CAIRN Energy said it hopes to complete the delayed sale of a big stake in its Indian business within weeks and announced that it might bid for exploration licences off Lebanon.

The Edinburgh-based firm hopes to conclude the $4 billion (£2.4bn) sale of the bulk of its stake in Cairn India to Vedanta Resources next month after approving official conditions it had said would be unacceptable.

Completion of the deal should pave the way for bumper payouts to investors, which Cairn first mooted after announcing the proposed deal last August.

Cairn’s new chief executive Simon Thomson said it would distribute a “substantial proportion” of the proceeds to investors.

Directors could then focus on the controversial hunt for oil and gas off Greenland, where Cairn may seek partners to help explore its massive acreage.

Completion of the Vedanta deal has been delayed by Cairn’s partner’s efforts to change the terms of the contract covering production from the giant fields that the company discovered in India.

State-owned ONGC has to pay all the royalties on the output but owns only 30% of the licence.

Cairn Energy announced that interim pre-tax profits surged to $733m (£444m), from $88m (£53m) last time, driven by the success of the Indian unit.

Earlier this year, Sir Bill Gammell, the former Scotland rugby international who has swapped the job of Cairn Energy chief executive for that of chairman, said the company would not accept changes to the royalty regime as it would infringe the sanctity of the relevant production sharing contract.

The company told investors yesterday it had voted in favour of acceptance of the cost recovery of royalties and another contested condition in a poll of Cairn India shareholders.

Mr Thomson said Cairn accepted the changes to ensure the interests of partners are aligned. Cairn has accepted that to make further progress in India it had to get ONGC and the country’s government on board.

If the sale completes, Cairn Energy will retain a 22% stake in an Indian business directors believe could increase production significantly, from about 125,000 barrels daily currently.

Cairn’s share could be used to generate funds for an ambitious exploration programme.

Cairn sold a 10% stake in the Indian firm to Vedanta for $1.4bn (£848m) in July,

Mr Thomson said Cairn may bid for licences that will be auctioned by Lebanon next year. Directors believe there could be big finds to be made in the underexplored waters of the Eastern Mediterranean.

The company will decide whether to bid after weighing the exploration potential against commercial and political factors.

Mr Thomson said directors are pleased with the progress Cairn has made off Greenland. Last year the company completed the first three wells in an initial multi-well campaign budgeted at around $1bn (£605m). While it has not made any commercial finds the company has gathered information which directors believe supports the view that the area is rich in oil and gas.

Mr Thomson said Cairn may look to farm out stakes in its acreage in Greenland next year to partners who could share the costs.

He said he hoped Cairn had addressed the concerns about the possible environmental risks involved in drilling off Greenland expressed by Greenpeace, saying: “We have clearly set out that we operate under some of the most stringent standards worldwide.”

Asked about a report that oil and gas firms have been asked to provide a $7bn (£4.2bn) guarantee for the cost of a potential spill off Greenland, a Cairn spokesman said the company meets all the rules and regulations set by the Greenland authorities.

Shares in Cairn Energy closed up 4.2p at 293.9p.