Even as the State-run Oil and Natural Gas Corporation (ONGC) sent a reminder to Britain's Cairn Energy regarding its proposed sale of shares of Cairn India to Vedanta Resources, Cairn Energy formally sought the official nod of the Government for the deal.
ONGC sent a reminder to Cairn Energy on September 10. Vedanta is offering up to $8.48 billion to buy as much as a 51 per cent stake in Cairn India, which has 10 oil assets in the country, including the giant Rajasthan oilfield.
On August 30, ONGC, which has a 30 per cent stake in Cairn India's Rajasthan block, had asked Cairn Energy to provide all the details related to the agreements between the company and the proposed buyer. In a letter to Cairn Energy Chief Executive Bill Gammell, ONGC Company Secretary N. K. Sinha had sought details of the Vedanta deal, saying it required ONGC's consent besides other governmental approvals to consummate the proposed sale of up to a 51 per cent stake in Cairn India to London-listed Vedanta.
It requested full details along with copies of the agreements and other arrangements entered into between Cairn Energy and/or its affiliates and the proposed buyer. On the other hand, Cairn Energy has sought the Petroleum and Natural Gas Ministry's nod for sale of majority stake in its Indian arm to Vedanta Resources, while separately telling partner ONGC that it had no pre-emption right as the deal was a mere share sale.
Undertaking to meet all contractual requirements needed to see the $8.48 billion deal through, the Edinburgh-based Cairn Energy has written to the Government for specific approvals.
The company has also written to ONGC on September 10 replying to the queries raised by it.