Govt yet to decide on Cairn-Vedanta deal: Oil Secy
Press Trust of India / Mumbai Sep 11, 2010, 19:12 IST
Oil Secretary S Sundareshan today said the government was yet to take a view on the Cairn- Vedanta deal, as it was awaiting reply from the British energy major on specific approvals involving 10 product sharing contracts with the oil ministry.
"Cairn India has 10 product sharing contracts (PSCs) with the government and going by the nature of the proposed deal, it seems that all these 10 PSCs will have to be specifically looked into.
"We have written to them saying they should seek these approvals but so far there has been no response. As soon as the requests come, they will be examined on merit and a decision will be taken," Sundareshan told reporters here.
The secretary further said that since the Cairn-Vedanta deal involved change in ownership through share sale as well as through sale of participatory interests, each of these PSCs had to be specifically examined.
On August 16, the London-based mining major Vedanta Resources, owned by the billionaire NRI Anil Agarawal, had agreed to buy up to 61 per cent stake in Cairn India from Cairn Energy for a consideration of up to $9.6 billion.
Cairn India is a three-way joint venture with Cairn, the domestic oil and gas major ONGC and Petronas of Malaysia. At present, the Edinburgh-based Cairn Energy holds 62.37 per cent in Cairn India.
It will sell a maximum of 51 per cent of its stake to Vedanta Group for $8.48 billion, and Vedanta will then go in for a $3-billion open offer for up to 20 per cent more stake. Petronas has nearly 15 per cent interest in the joint venture with the rest being held by ONGC.
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Oil Secretary S Sundareshan today said the government was yet to take a view on the Cairn- Vedanta deal, as it was awaiting reply from the British energy major on specific approvals involving 10 product sharing contracts with the oil ministry.
