OREANDA-NEWS. September 28, 2011. ONGC Board in its 223rd Meeting, took up an agenda regarding the proposed transaction of sale of shares in Cairn India Ltd by Cairn Energy PLc to Vedanta Resources PLc.          

Cairn India had sought NOC from ONGC in respect to the PSCs with blocks namely, RJ-ON-90/1, PR-OSN-2004/1, KG-ONN-2003/1, KK-DWN-2004/1 and KG-DWN-98/2, while agreeing to other two conditions relating to cost recovery of royalty and withdrawal of Cess case in respect of RJ-ON-90/1.       

ONGC, while evaluating CAIRN’s request to issue them NOC for the proposed transaction and its option of exercising preemptive rights, carried out the valuation of the proposed transaction with the help of SBI Capital Markets Ltd.         

After detailed deliberations on preemptive rights and economic evaluation, and as CAIRN has agreed to the two conditions relating to cost recovery of royalty and withdrawal of Cess arbitration case in respect of RJ-ON-90/1, the Board of ONGC resolved that CAIRN’s request as above may be agreed to, subject to CAIRN, Vedanta and their Affiliates executing a formal agreement with ONGC agreeing to the royalty and cess conditions.