suite réunion = nouvelle réunion demain

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6 FEB, 2011, 08.41PM IST,PTI
High-profile meet on Cairn-Vedanta deal inconclusive

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Read more on »vedanta resources|oil secy s sundareshan|oil ministry


NEW DELHI: A crucial meeting to discuss government approval for Vedanta Resources' USD 9.6 billion acquisition of Cairn India today remained inconclusive and Oil Secretary S Sundareshan will meet the chief executives of the two firms again tomorrow to thrash out their differences.

While Oil Secretary S Sundareshan described the 90-minute deliberation as "extremely constructive", Cairn Energy -- which is selling most of its stake in its Indian unit to Vedanta -- hoped to complete the transaction on schedule by April 15.

This was the first time the Oil Ministry met Edinburgh- based Cairn Energy Plc Chief Executive Bill Gammell, Cairn India CEO Rahul Dhir and Vedanta representatives M S Mehta (Group CEO) and Tarun Jain (CFO) together.

Cairn India brought its most vocal independent director, Omkar Goswami, purportedly to put pressure on the Oil Ministry to give approval without insisting on three out of the 11 preconditions it had set for according approval for the deal.

Sources said the two sides went over each of the 11 conditions, with Cairn/Vedanta explaining their point of view. The Oil Ministry, however, held its ground on the precondition that state-run Oil and Natural Gas Corp's (ONGC) royalty liability in Cairn India's mainstay Rajasthan block will have to be addressed before such approval.

The Rajasthan block, which gives Cairn India 90 per cent of its valuation, is a losing proposition for ONGC, as it has to pay 20 per cent royalty to the state government on the entire output from the field, even though its share of production is only 30 per cent.

Cairn India does not pay royalty on the crude and has even contested the payment of Rs 2,500 per tonne cess on its 70 per cent share.

"We had extremely constructive dialogue... We hope to move forward to a positive solution," Sundareshan told reporters.

Refusing to dwell on the deliberations at the meeting, he said "various issues" concerning the deal were being discussed.

Describing the deliberations as "constructive", Cairn Energy said, "Cairn and Vedanta continue to work with the government of India to complete the proposed transaction before April 15, 2011."

Sources said the government is prepared to give approval to the deal subject to Cairn/Vedanta meeting conditions like agreeing to ONGC's demand for recovering the Rs 14,000 crore royalty the state firm will have to pay on behalf of Cairn India from the sale of oil produced from Rajasthan fields.

Acceptance of the demand would impact Cairn India's valuation as its future profits will go down and the company says its minority shareholder interest will be compromised.



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Réunion suite demain = Réunion Nouvelle
6 février 2011, 20:41 IST, PTI
High-profil rencontrer face Cairn-Vedanta concluants

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En savoir plus sur »Vedanta Resources | SECY huile s sundareshan | ministère du Pétrole


NEW DELHI: Une réunion cruciale pour discuter de l'approbation du gouvernement pour Vedanta Resources USD 9,6 milliards acquisition de Cairn India aujourd'hui n'était pas concluante et l'huile Secrétaire S Sundareshan rencontrera les hauts dirigeants des deux entreprises à nouveau demain pour régler leurs différends.

Alors que le pétrole Secrétaire S Sundareshan décrit la délibération de 90 minutes d '"extrêmement constructives", Cairn Energy - qui se vend le plus de sa participation dans son unité indienne de Vedanta - espère achever la transaction dans les délais prévus pour le 15 avril.

C'était la première fois le ministère du Pétrole a rencontré basée à Edimbourg Cairn Energy Plc chef de la direction Bill Gammell, Cairn India PDG Rahul Dhir et Vedanta représentants MS Mehta (CEO du groupe) et Tarun Jain (CFO) ensemble.

Cairn India a apporté son réalisateur le plus vocal indépendante, Omkar Goswami, prétendument pour faire pression sur le ministère du Pétrole à donner son approbation sans insister sur trois des 11 conditions préalables qu'elle s'était fixés pour l'approbation selon la face.

Selon certaines sources, les deux parties ont sur chacun des 11 conditions, avec Cairn / Vedanta expliquant leur point de vue. Le ministère du Pétrole, cependant, a tenu sa terre sur la condition préalable que l'Etat terme de pétrole et de gaz naturel responsabilité Corp redevance (ONGC) dans le bloc des piliers du Rajasthan en Inde Cairn devra être adressée avant cette approbation.

Le bloc du Rajasthan, qui donne Cairn India 90 pour cent de son évaluation, est une proposition perdante pour ONGC, car il doit payer 20 pour cent des redevances au gouvernement d'état sur l'ensemble des sorties sur le terrain, même si sa part de la production est seulement 30 pour cent.

Cairn India ne paie pas de redevances sur le pétrole brut et a même contesté le paiement de Rs 2.500 par tonne sur les processus de sa part de 70 p. cent.

"Nous avons eu un dialogue extrêmement constructif ... Nous espérons aller de l'avant à une solution positive," a déclaré aux journalistes Sundareshan.

Refusant de s'appesantir sur les délibérations lors de la réunion, il a dit "questions diverses" concernant l'accord ont été discutées.

Décrire les délibérations de "constructive", Cairn Energy a déclaré, "Cairn et Vedanta continuera à travailler avec le gouvernement de l'Inde pour compléter la transaction proposée avant le 15 avril 2011."

Selon certaines sources, le gouvernement est prêt à donner son approbation à ce sujet face à Cairn / conditions réunion Vedanta comme convenant à la demande ONGC pour récupérer les redevances de crore de Rs 14.000 la société d'État devra payer au nom de Cairn India de la vente de l'huile produite à partir de champs du Rajasthan.

Acceptation de la demande aurait une incidence sur l'évaluation Cairn Inde en tant que ses profits futurs vont baisser et l'entreprise affirme que ses intérêts des actionnaires minoritaires sera compromise.