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.”

Related Articles

Ultra Petroleum selects senior vice-president

04/01/2014 Ultra Petroleum Corp., Houston, has appointed Brad Johnson to succeed William Picquet, who will retire from the company at the end of the month, as...

New Gulf Resources appoints chief executive officer

04/01/2014 New Gulf Resources LLC, Tulsa, has appointed Ralph A. Hill as chief executive officer and chairman of its board. He previously served as chief exec...

Apache to sell more Western Canada assets

03/31/2014 Houston independent Apache Corp. has agreed to sell its producing oil and gas assets in the Deep basin area of western Alberta and British Columbia...

Cooper Energy buys into Basker-Manta-Gummy fields

03/31/2014 Cooper Energy Ltd., Adelaide, has acquired a 65% interest and operatorship of the the Basker-Manta-Gummy (BMG) oil and gas fields in Bass Strait.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected