Strings attached in Cairn/Vedanta deal
Vedanta Resources is inching closer to its proposed take-over of Cairn India, after the Indian government cleared the long-delayed deal
Deal, or no deal?
It will then secure another 30% from Cairn Energy once it clears the government’s regulatory hurdles, leaving Cairn Energy with a 22.2% share and exposure to future expansion. Vedanta is waiting for the official announcement of the approval and details of the pre-conditions from the government.
The strategically important Rajasthan Block RJ-ON-90/1 holds at least 6.5 billion barrels of oil equivalent (boe/d) in place and began production in 2009.The fields are the biggest onshore energy resource discovered in the past two decades in India, which relies on imports for about 70% of its energy needs. The block’s capacity of 130,000 boe/d has the potential to reach 205,000 boe/d with the planned start-up of a fourth processing train later this year and potentially 240,000 boe/d.