ONGC writes to Cairn Energy on Vedanta deal

State-owned Oil and Natural Gas Corporation (ONGC) on Monday said it had sent a reminder to UK-based Cairn Energy Plc regarding the proposed sale of shares of Cairn India to Vedanta Resources.

The company had sent the reminder on September 10, ONGC said in a filing to the Bombay Stock Exchange.

Billionaire Anil Agarwal-led Vedanta is offering $8.48 billion (about Rs 39,280 crore) to buy up to 51 per cent stake in Cairn India, which has ten oil assets in the country, including the giant Rajasthan oilfield.

On August 30, ONGC, which has a 30 per cent stake in the Rajasthan block, had asked Cairn Energy Plc to provide details related to the agreements between the company and the proposed buyer.

In a letter to Cairn Energy CEO, Bill Gammell, Company Secretary N K Sinha had said the Edinburgh-based firm required "consent of ONGC besides other governmental approvals to consummate the proposed" share sale.

The state-owned company believes that by virtue of its stake in Rajasthan block, it has the right to first refusal to buy Cairn India in case the company's ownership changed.

"It is noted that ONGC has, inter-alia, pre-emptive rights in relation to Cairn's participating interest under the various agreements with the government of India and ONGC. Cairn Energy Plc and/or its affiliates require consent of ONGC besides other governmental approvals to consummate the proposed transaction," he wrote.

The company requested "full details along with copies of the agreements and other arrangements entered into between Cairn Energy Plc and/or its affiliates and the proposed buyer (Vedanta Resources)."