Oil Ministry sets 11 preconditions for Vedanta-Cairn deal

[bingogo]

24 Jan, 2011, 04.08PM IST,PTI
Oil Ministry sets 11 preconditions for Vedanta-Cairn deal


NEW DELHI: The Oil Ministry is ready to give "in-principle" approval for Vedanta Resources' $9.6 billion acquisition of Cairn India , provided the mining firm led by billionaire Anil Agarwal agrees to a set of 11 preconditions.

Earlier this month, the Oil Ministry had sought the Law Ministry's opinion on the legality of imposing certain preconditions on the stake sale, including Vedanta agreeing to withdraw pending lawsuits filed by Cairn with respect to payment of oil cess and accepting partner ONGC's preemption rights.

Sources said the ministry also wants Vedanta to agree to consider the royalty paid on crude oil produced from Cairn's mainstay Rajasthan block in the project cost and its profits calculated thereafter.

As per the Production Sharing Contract (PSC), the operator is permitted to recover all project costs from the sale of oil or gas produced from a field before a mechanism for profit-sharing with the government comes into play.

State-owned Oil and Natural Gas Corp (ONGC) holds a 30 per cent stake in Rajasthan block RJ-ON-90/1, but pays the royalty on the entire quantum of production, as it is the licencee of the block.

If the royalty paid by ONGC on behalf of Cairn is taken into consideration while calculating the project cost, this would lower the profits of the Scottish Energy firm, which does not pay royalty on its 70 per cent share of the projected 12 million tonnes per annum output from the block.

Sources said the preconditions also include Vedanta guaranteeing that Cairn's technical capability will be undisturbed by the share transfer and the London-listed firm providing a fresh financial and performance guarantee.

The ministry also wants Vedanta to accept the government's decision on future exploration activities and expenditures as "final and binding", as well as unconditionally accept the government's position on issues that have been challenged by Cairn in courts.

Like royalty, Cairn believes the liability to pay cess of Rs 2,500 per tonne on all crude oil produced from the Rajasthan block also rests on ONGC.

This position has been disputed by ONGC and the ministry, which say that cess is to be paid by the project partners in proportion to their shareholding and the matter is under arbitration, sources said.

The ministry said its "in-principle approval shall be further subject to ONGC's decision on the right of first refusal" on the Rajasthan block, as the Solicitor General of India's view was that the transfer triggered ONGC's preemption rights.

The new Oil Minister, S Jaipal Reddy, had last week stated he will "not lose time" in deciding on giving consent to Vedanta buying Edinburgh-based Cairn Energy's majority stake in Cairn India.

"The issues relating to Cairn-Vedanta have legal implications. So some of them have been referred to the law ministry for clarification," Reddy had stated.









India Ministry Sets Terms for Vedanta-Cairn Accord, PTI Reports
By Rakteem Katakey - Jan 24, 2011 12:35 PM GMT+0100

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India’s oil ministry has set 11 conditions to approve Vedanta Resources Plc’s plan to buy Cairn India Ltd., the Press Trust of India reported, citing unidentified people.

The conditions include Vedanta agreeing to withdraw lawsuits Cairn India filed on payment of tax on crude oil, according to the report. The ministry wants royalty paid on output from Cairn’s Rajasthan oilfield included in the project cost before calculating profits, Press Trust said.

State-owned Oil & Natural Gas Corp., Cairn’s partner in the block with a 30 percent stake, currently pays the entire royalty, the news agency said.

Oil Secretary S. Sundareshan, the top bureaucrat in the ministry, didn’t answer a call made to his office phone seeking comment.

[bobded]

24 janvier 2011, 16h08 CEST, PTI
Du ministère du Pétrole définit 11 conditions préalables à Vedanta-Cairn face


NEW DELHI: Le ministère du Pétrole est prêt à donner «de principe» l'approbation de Vedanta Resources 9,6 milliards de dollars l'acquisition de Cairn India, à condition que l'entreprise minière dirigée par le milliardaire Anil Agarwal s'engage à un ensemble de 11 conditions.

Plus tôt ce mois-ci, le ministère du Pétrole a demandé l'avis du ministère de la loi sur la légalité d'imposer certaines conditions préalables à la vente jeu, y compris Vedanta acceptant de retirer l'attente des procès intentés par Cairn à l'égard de paiement des processus de pétrole et de l'acceptation de droits partenaire préemption ONGC est.

Selon certaines sources, le ministère souhaite également Vedanta se mettre d'accord pour considérer la redevance payée sur le pétrole brut produit à partir du bloc pilier Rajasthan Cairn dans le coût du projet et de ses bénéfices calculés par la suite.

Comme par le Production Sharing Contract (CFP), l'exploitant est autorisé à récupérer tous les coûts du projet de la vente du pétrole ou du gaz produit à partir d'un terrain avant un mécanisme de partage des bénéfices avec le gouvernement entre en scène.

Appartenant à l'Etat de pétrole et de gaz naturel Corp (ONGC) est titulaire d'un 30 pour cent des parts dans le Rajasthan bloc RJ-ON-90 / 1, mais doit payer la redevance sur le montant entier de la production, comme c'est le titulaire de la licence du bloc.

Si la redevance payée par ONGC au nom de Cairn est pris en considération lors du calcul du coût du projet, cela permettrait de réduire les bénéfices de l'entreprise écossaise de l'énergie, qui ne paient pas de redevances sur sa part de 70 p. cent des 12 millions de tonnes par an devrait sortie du bloc.

Selon certaines sources, les conditions préalables comprennent également Vedanta garantissant que les capacités techniques Cairn sera perturbé par le transfert des actions et la société cotée à Londres offre une garantie de frais financiers et de performance.

Le ministère souhaite également Vedanta à accepter la décision du gouvernement sur les futures activités d'exploration et les dépenses comme «définitive et contraignante», ainsi que l'acceptation inconditionnelle la position du gouvernement sur les questions qui ont été contestées par Cairn dans les tribunaux.

Comme la royauté, Cairn estime l'obligation de payer processus de Rs 2.500 par tonne sur le pétrole brut produit à partir du bloc Rajasthan repose aussi sur ONGC.

Cette position a été contestée par ONGC et le ministère, qui disent que processus doit être payé par les partenaires du projet en proportion de leur participation et l'affaire est soumis à l'arbitrage, selon ces sources.

Le ministère a déclaré que son «approbation de principe doit encore être soumis à la décision ONGC sur le droit de premier refus» sur le bloc Rajasthan, que le solliciteur général de vue de l'Inde a été que le transfert a déclenché des droits de préemption de ONGC.

Le nouveau ministre du Pétrole, S Jaipal Reddy, avait dit la semaine dernière qu'il "ne pas perdre de temps" pour décider de donner son consentement à Vedanta acheter une participation majoritaire basée à Edimbourg Cairn Energy en Inde Cairn.

"Les questions relatives à Cairn-Vedanta ont des implications juridiques. Ainsi, certains d'entre eux ont été renvoyés au ministère de la loi de clarification», Reddy a déclaré.









Ministère de l'Inde fixe les modalités de l'Accord Vedanta-Cairn, Rapports PTI
En Katakey Rakteem - 24 janvier 2011 12:35 GMT PM +0100


ministère du pétrole de l'Inde a mis 11 conditions pour approuver le plan de Vedanta Resources Plc à acheter Cairn India Ltd, l'agence Press Trust of India, citant des sources non identifiées.

Les conditions comprennent Vedanta acceptant de retirer poursuites Cairn India déposé le paiement de la taxe sur le pétrole brut, selon le rapport. Le ministère veut redevance payée à la sortie de champs de pétrole Cairn Rajasthan inclus dans le coût du projet avant de calculer les bénéfices, Press Trust dit.

Appartenant à l'Etat Oil & Natural Gas Corp, partenaire Cairn dans le bloc avec une participation de 30 pour cent, verse actuellement la redevance entier, a déclaré l'agence de nouvelles.

Huile Secrétaire S. Sundareshan, le plus haut fonctionnaire du ministère, n'a pas répondu à un appel fait à son téléphone de bureau sollicite des commentaires.

[Le Niçois]

24 Jan, 2011, 04.08PM IST,PTI
Oil Ministry sets 11 preconditions for Vedanta-Cairn deal


NEW DELHI: The Oil Ministry is ready to give "in-principle" approval for Vedanta Resources' $9.6 billion acquisition of Cairn India , provided the mining firm led by billionaire Anil Agarwal agrees to a set of 11 preconditions.

Earlier this month, the Oil Ministry had sought the Law Ministry's opinion on the legality of imposing certain preconditions on the stake sale, including Vedanta agreeing to withdraw pending lawsuits filed by Cairn with respect to payment of oil cess and accepting partner ONGC's preemption rights.

Sources said the ministry also wants Vedanta to agree to consider the royalty paid on crude oil produced from Cairn's mainstay Rajasthan block in the project cost and its profits calculated thereafter.

As per the Production Sharing Contract (PSC), the operator is permitted to recover all project costs from the sale of oil or gas produced from a field before a mechanism for profit-sharing with the government comes into play.

State-owned Oil and Natural Gas Corp (ONGC) holds a 30 per cent stake in Rajasthan block RJ-ON-90/1, but pays the royalty on the entire quantum of production, as it is the licencee of the block.

If the royalty paid by ONGC on behalf of Cairn is taken into consideration while calculating the project cost, this would lower the profits of the Scottish Energy firm, which does not pay royalty on its 70 per cent share of the projected 12 million tonnes per annum output from the block.

Sources said the preconditions also include Vedanta guaranteeing that Cairn's technical capability will be undisturbed by the share transfer and the London-listed firm providing a fresh financial and performance guarantee.

The ministry also wants Vedanta to accept the government's decision on future exploration activities and expenditures as "final and binding", as well as unconditionally accept the government's position on issues that have been challenged by Cairn in courts.

Like royalty, Cairn believes the liability to pay cess of Rs 2,500 per tonne on all crude oil produced from the Rajasthan block also rests on ONGC.

This position has been disputed by ONGC and the ministry, which say that cess is to be paid by the project partners in proportion to their shareholding and the matter is under arbitration, sources said.

The ministry said its "in-principle approval shall be further subject to ONGC's decision on the right of first refusal" on the Rajasthan block, as the Solicitor General of India's view was that the transfer triggered ONGC's preemption rights.

The new Oil Minister, S Jaipal Reddy, had last week stated he will "not lose time" in deciding on giving consent to Vedanta buying Edinburgh-based Cairn Energy's majority stake in Cairn India.

"The issues relating to Cairn-Vedanta have legal implications. So some of them have been referred to the law ministry for clarification," Reddy had stated.









India Ministry Sets Terms for Vedanta-Cairn Accord, PTI Reports
By Rakteem Katakey - Jan 24, 2011 12:35 PM GMT+0100

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India’s oil ministry has set 11 conditions to approve Vedanta Resources Plc’s plan to buy Cairn India Ltd., the Press Trust of India reported, citing unidentified people.

The conditions include Vedanta agreeing to withdraw lawsuits Cairn India filed on payment of tax on crude oil, according to the report. The ministry wants royalty paid on output from Cairn’s Rajasthan oilfield included in the project cost before calculating profits, Press Trust said.

State-owned Oil & Natural Gas Corp., Cairn’s partner in the block with a 30 percent stake, currently pays the entire royalty, the news agency said.

Oil Secretary S. Sundareshan, the top bureaucrat in the ministry, didn’t answer a call made to his office phone seeking comment.

Bingogo , ultimatum du Gouvernement Indien à Védanta ?....