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ONGC has appointed a third party to do the valuation of Cairn India’s oil and gas assets. Cairn Energy needs No Objection Certificates from ONGC, a joint venture partner in a majority of Cairn’s assets in India, for smooth transfer of its stake to Vedanta Resources.
“We may consider the Cairn Energy issue at our next board meeting slated for September 27,” Mr A.K. Hazarika, Chairman and Managing Director, ONGC, said.
Any deliberation on the issue by ONGC will happen only after September 14, once Cairn India’s shareholders give their mandate on whether they accept Government's conditions – royalty cost recoverable and withdrawal of arbitration cases by Cairn India.
Decisions such as whether ONGC would like to use its pre-emptive rights or not can be taken by the company’s board alone. Such a decision cannot be taken at the executive level.
Cairn Energy has written to ONGC about its intent of seeking NOCs by September 21 for the stake sale.
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