 New Delhi : Caught completely off guard by Cairn Energy Plc's move to sell up to 51% stake in Cairn India to London Stock Exchange-listed Vedanta Resources promoted by NRI tycoon Anil Agarwal, flagship explorer ONGC has now told the Scottish explorer that the deal cannot go through without the state-run company's consent.
ONGC is a 30% partner in Cairn India's Rajasthan oilfields that form the bullwark of the private explorer's Indian assets and valuation. In a letter to Cairn Energy Plc CEO Bill Gammell, ONGC company secretary N K Sinha has sought details of the deal with Vedanta, saying the UK firm needed "consent of ONGC besides other governmental approvals to consummate" the deal.
Industry analysts see the ONGC letter as mere sabre-rattling, and say the company may not be able to do much unless the oil ministry wants to stall the Cairn-Vedanta deal.
According to analysts, ONGC may have written the letter based on its pre-emption rights as a partner in Cairn's Rajasthan fields.
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