Vedanta, Cairn guarded on takeover nod

By OGJ editors

HOUSTON, July 1
-- Vedanta Resources PLC and Cairn Energy have responded noncommittally to a June 30 report by the Indian government of conditional approval of Vedanta’s acquisition of a controlling interest in Cairn India Ltd.

Vedanta, a mining conglomerate based in London, offered in August 2010 to buy up to 60% of Cairn India for $9.6 billion and has since bought minority interests (OGJ, Apr. 25, 2011, Newsletter). Cairn India holds several exploration and production licenses in India and is developing a complex of fields in Rajasthan with production climbing toward an approved peak of 175,000 b/d.

The deal has been complicated by a dispute over handling of royalty payments in the Rajasthan operation by state-owned Oil & Natural Gas Corp., a 30% partner.

On June 30, the Ministry of Petroleum and Natural Gas reported that the Cabinet Committee on Economic Affairs approved the transaction subject to several conditions, including approval by ONGC, settlement of the royalty dispute in favor of ONGC, and withdrawal of an arbitration case over the proposal.

“Cairn has not yet received formal confirmation of any conditions or of further consents attaching to the approval,” Cairn Energy, Edinburgh, said in a statement. “Cairn and Vedanta continue to work towards concluding this transaction.”

Vedanta said, “Vedanta awaits official intimation of the approval and details of the preconditions from the government of India in order to consider further course of action.”



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs