Cairn faces green row in Nepal

SOARAWAY oil group Cairn Energy could be walking into a row over the environment as it prepares to take up exploration licences along the foothills of the Himalayas in Nepal.

The World Wildlife Fund is seeking urgent talks with the company amid concerns the effects any search for oil could have on one of the most sensitive ecosystems in the world.

The Nepalese government this week approved the licences that will be the next big project for Cairn after its big success in Rajasthan, north-west India.

But WWF claims at least four of the five zones, which together cover an area three times the size of Belgium, overlap parts of three national parks, including Royal Chitwan.

It runs a host of projects to protect wildlife such as the Bengal tiger and the Asiatic elephant and said any oil extraction could have 'devastating' effects. Spokesman Dax Lovegrove said: 'It is vital that any oil exploration in such a delicate environment is undertaken in partnership with WWF, local communities and other stakeholders.'

Any exploration is at least three years away and Cairn is likely to be quick to allay any fears. In the past it has lobbied for sensitive areas to be removed from a licence in Bangladesh.