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6 APR, 2011, 01.22AM IST, RAJEEV JAYASWAL,ET BUREAU
Government nod for Cairn-Vedanta deal may come with rider

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NEW DELHI: The government's approval to the $9.6-billion Cairn-Vedanta deal, expected on Wednesday, will be subject to the LSE-listed Vedanta passing the home ministry's security scanner, two officials with direct knowledge of the matter said.

The cabinet note has said that the government's consent is subject to "necessary security clearance" to Vedanta Resources Plc for acquiring the controlling stake in Cairn India which holds 10 oil and gas blocks in the country, including their main field in Rajasthan, close to the Pakistan border, they said requesting anonymity.

Commenting on a draft cabinet note on the Cairn-Vedanta matter by the oil ministry, the home ministry has said that it would not be able to give security clearance to Vedanta immediately in such a short notice, the officials said. The government is being cautious as the deal could set precedence for similar acquisitions by foreign firms, including those from China and Pakistan, which could be controversial, the official said. The home ministry's security clearance to any company is a time-consuming process. The cabinet committee on economic affairs (CCEA) could clear the deal with the condition that Vedanta must get clearance from the home ministry, the officials said.

ET had reported on August 17 that the UK-based Vedanta Resources Plc's move to indirectly acquire the country's oil and gas assets including India's biggest onland oil fields in Rajasthan would be scanned by security agencies as the case would set a precedence for similar acquisitions by foreign firms.

"Prima facie Vedanta may not face any hurdle on security issues as it is promoted by an Indian. But the government can't discriminate on the basis of promoters' nationality," one official said.

Officials at the Directorate General of Hydrocarbon (DGH) said that oil and gas blocks are awarded to energy companies only after verifying their credentials. "The same would apply for transfer of assets," one DGH official said requesting anonymity. DGH, a technical arm of the oil ministry, is the custodian of country's oil and gas assets.

The Rajasthan oil fields are especially vulnerable amid growing terror threats from across the boarder, the official said. On August 16, Vedanta had announced that it was acquiring a controlling stake in UK-based Cairn Energy Plc's Indian arm Cairn India for about $9.6 billion. Cairn India is the operator of Rajasthan block that alone constitutes over 90% of the deal valuation.

The government had also raised security concerns regarding the Rajasthan oil block at the management committee meeting of the Rajasthan field in May. The issue was triggered by terrorist attempt to blow out ONGC's oil and gas installations and the observations of the National Security Council Secretariat (NSCS). The secretariat identifies oil and gas exploration, refineries, liquefied natural gas and natural gas pipelines as sensitive sectors, critical to the economy and social security. NSCS is an apex agency to address economic, political, energy and strategic security concerns of the country.

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6 APR, 2011, 07.15PM IST,PTI
CCEA refers $9.6 bn Cairn-Vedanta deal to GoM

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NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday referred the USD 9.6 billion Cairn-Vedanta deal to a group of ministers after sharp differences emerged at its meeting here.

"It has been referred to a Group of Ministers (GoM)...the GoM will be headed by Finance Minister Pranab Mukherjee," Oil Minister S Jaipal Reddy said here.

Yesterday, the UK-based Vedanta Group had said it has received market regulator Sebi's nod to acquire a 51 per cent stake in Cairn India and will launch an open offer soon.

Oil and Natural Gas Corp (ONGC) in July 2010, more than a month before Cairn Energy announced stake sale in its Indian unit to Vedanta, had said that royalty, like any other levy, is cost recoverable. It had cited provisions in the field contracts to assert its point.

Cairn India, which holds 70 per cent stake in the 6.5 billion barrels Rajasthan block, does not pay any royalty and is opposed to making it cost recoverable as it will dent its profits. ONGC holds the remaining 30 per cent stake in the block.

[LesCrozes]

Cairn-Vedanta deal referred to FM-headed GoM: Jaipal Reddy
Published on Wed, Apr 06, 2011 at 19:12 | Updated at Wed, Apr 06, 2011 at 20:00

The USD 9.6 billion deal between Cairn India and Vedanta Resources has been referred to the group of ministers (GoM) headed by finance minister Pranab Mukhrejee, oil minister Jaipal Reddy said. "The Cabinet Committee on Economic Affairs (CCEA), which was scheduled to discuss the deal on Wednesday, has decided to refer the matter to the GoM," he added.
"The GoM will give its report shortly after it has examined the deal from all angles. We must understand there are several implications of this deal," said the FM.
This does not come as a surprise as sources had told CNBC-TV18 late this morning that the final draft cabinet note that went to the CCA continued to maintain that there were some serious irreconcilable differences between the positions held by the oil ministry and the positions held by the two companies.
"The GoM will go into issues of royalty and cess arbitration as the CCEA feels more deliberations were needed," Reddy added.
A disappointed RS Sharma said, "Some decision should have been taken. These are all contractual disputes which can get settled in the course of time. I was hoping on that basis the decision would be coming to allow to go through."
ONGC has been maintaining that royalty is cost recoverable. That seems to have been the opinion of the law ministry, the solicitor general of India, the finance ministry and of course the oil ministry as well.
Meanwhile, oil secretary S Sundareshan has said that he expects the GoM to take a call within weeks. "GoM's view will be considered by CCEA."

[LesCrozes]

Cabinet refers Cairn-Vedanta deal to GoM

NEW DELHI | Wed Apr 6, 2011 7:21pm IST
(Reuters) - The cabinet is unanimous in its opinion that royalties related to a deal in which Vedanta Resources would take control of Cairn India (CAIL.BO) should be cost recoverable, Oil Minister S. Jaipal Reddy said on Wednesday.

Reddy spoke to reporters after the cabinet referred the deal to a panel of ministers. "There are some complex issues. The cabinet committee felt such a decision should not be taken in a hurry," he said.

[frédéric]

traduction :
Cairn face-Vedanta visée à FM-tête GdM: Jaipal Reddy
Publié le Wed, 6 avril 2011 à 19:12 | Mise à jour à Mer, le 6 avril 2011 à 20:00

Le USD 9,6 milliards accord entre l'Inde et Cairn Vedanta Resources a été renvoyé au groupe de ministres (GoM) dirigé par le ministre des Finances Pranab Mukhrejee, ministre du pétrole Jaipal Reddy dit. "Le Comité du Cabinet sur ​​les affaires économiques (CCEA), qui était prévue pour discuter de l'affaire le mercredi, a décidé de renvoyer l'affaire devant le GdM, at-il ajouté.
«Le GdM donnera prochainement son rapport après avoir examiné l'affaire sous tous les angles. Nous devons comprendre qu'il ya plusieurs implications de cet accord", a déclaré la FM.
Ce n'est pas une surprise que les sources avaient dit à CNBC-TV18 tard ce matin que le projet de note finale du Cabinet qui s'est rendue à la CCA continue de soutenir qu'il y avait des différences inconciliables entre les graves positions tenues par le ministère du pétrole et les postes occupés par les deux sociétés.
«Le GdM ira dans les questions de la royauté et de l'arbitrage que le processus du CCAE se sent plus délibérations ont été nécessaires», a ajouté Reddy.
Un déçu RS Sharma a dit: «Certaines décisions auraient dû être prises. Ce sont tous des différends contractuels qui peuvent s'installer dans le cours du temps. J'espérais sur cette base, la décision serait à venir pour permettre de passer."
ONGC a maintenu que la royauté est un recouvrement des coûts. Cela semble avoir été l'avis du ministère de la loi, le solliciteur général de l'Inde, le ministère des Finances et bien sûr le ministère du pétrole ainsi.
Pendant ce temps, l'huile de secrétaire S Sundareshan a dit qu'il s'attend à ce que le gouvernement du Mozambique pour prendre un appel dans les prochaines semaines. «Voir le GdM sera examiné par le CCAE."

[frédéric]

traduction:

Cabinet se réfère beaucoup Cairn-Vedanta à la MBO

NEW DELHI | Mer le 6 avril 2011 07:21 pm CEST
(Reuters) - Le cabinet est unanime dans son avis que les redevances liées à une transaction dans laquelle Vedanta Resources prendrait le contrôle de Cairn India (CAIL.BO) devrait être de recouvrement des coûts, le ministre du Pétrole S. Jaipal Reddy a déclaré mercredi.

Reddy a parlé aux journalistes après que le cabinet visé l'affaire à un groupe de ministres. «Il ya des questions complexes. Le comité du Cabinet ressenti une telle décision ne devrait pas être prise à la hâte, dit-il.

[bingogo]

India Refers Vedanta Plan to Buy Cairn Unit to Ministers' Panel


April 6 (Bloomberg) -- India will refer a proposal by Vedanta Resources Plc to acquire Cairn India Ltd. to a panel of ministers, potentially delaying the completion of the transaction first announced in August.

Finance Minister Pranab Mukherjee will head the group, Oil Minister S. Jaipal Reddy told reporters in New Delhi today. The decision was announced after Sesa Goa Ltd., a unit of Vedanta, said today it would start an open offer for Cairn India shares on April 11.

Vedanta, a copper and aluminum company with no experience in producing oil or natural gas, has waited almost eight months to buy as much as 60 percent of Cairn Energy Plc's Indian unit, including Sesa's open offer. Billionaire Chairman Anil Agarwal said yesterday Vedanta won regulatory approval for its bid.

Vedanta declined as much as 1.9 percent to 2,470 pence in London, while Cairn Energy dropped as much as 1.4 percent to 463.30 pence. Cairn India fell 4 percent to 350.55 rupees at the close in Mumbai and Sesa climbed 3.5 percent to 325.75 rupees.

State-run Oil & Natural Gas Corp., Cairn India's partner in the biggest oilfield in Rajasthan state, is seeking to change a contract that makes it liable to pay royalty on all the crude oil produced from the area even though it owns a 30 percent stake. The group of ministers will consider ONGC's position that the royalty payments can be added to the project cost, which the partners are allowed to recover from sales.

Two Options

"My own ministry, petroleum and natural gas, took a categorical stand that royalty should be cost recoverable," Reddy said. "I presented two options. One was to give conditional clearance, the other was to give clearance while leaving the legal recourse open to both the parties. A decision would be taken between these two options."

ONGC may make 140 billion rupees ($3.2 billion) as royalty payments on Cairn India's behalf over the life of the field, according to the New Delhi-based company.

"We now only need approval from the Cabinet, which we expect to get before April 15," Agarwal said yesterday. "There is a royalty issue between Cairn India and ONGC and that has to be dealt with separately."

Mukherjee told reporters in New Delhi that the panel of ministers will submit its report on the deal "shortly." He didn't elaborate.

Cairn Energy is committed to completing the deal by April 15, Chief Executive Officer Bill Gammell said in New Delhi on March 16.

--With assistance from Anto Antony in New Delhi. Editors: John Chacko, Abhay Singh.

Read more: http://www.sfgate.com/cgi-bin/article.c ... z1Il2myiPr

[jbd48]

Il était une fermière
Qui allait au marché
Elle portait sur sa tête
Trois pommes dans un panier
Les pommes faisaient Rouli Roula (bis)
Stop !
Trois pas en avant
Trois pas en arrière
Deux pas sur l'coté
Et deux pas d'l'autre coté

On reprend!

[bobded]

L'Inde se réfère Plan Vedanta acheter Unité Cairn à Pa Ministres
L'Inde se réfère Plan Vedanta acheter Unité Cairn au tableau de bord des ministres


6 avril (Bloomberg) - L'Inde renvoie la proposition de Vedanta Resources Plc à acquérir Cairn India Ltd à un groupe de ministres, ce qui pourrait retarder l'achèvement de la première transaction annoncée en août.

Le ministre des Finances Pranab Mukherjee sera à la tête du groupe, le ministre du Pétrole S. Jaipal Reddy a déclaré aujourd'hui à New Delhi. La décision a été annoncée après Sesa Goa Ltd, une unité de Vedanta, a annoncé aujourd'hui qu'elle commencera une offre ouverte pour les actions Cairn India, le 11 avril.

Vedanta, une société de cuivre et d'aluminium qui n'ont aucune expérience dans la production de pétrole ou de gaz naturel, a attendu près de huit mois pour acheter jusqu'à 60 pour cent de l'unité indienne Cairn Energy Plc, y compris une offre ouverte de Sesa. Billionaire président Anil Agarwal a dit hier Vedanta a gagné l'approbation réglementaire pour son offre.

Vedanta autant baissé que de 1,9 pour cent à 2.470 pence à Londres, tandis que Cairn Energy a chuté de près de 1,4 pour cent à 463,30 pence. Cairn Inde a diminué de 4 pour cent à 350,55 roupies à la fin de Mumbai et de Sesa augmenté de 3,5 pour cent à 325,75 roupies.

Gérée par l'État Oil & Natural Gas Corp, partenaire Cairn de l'Inde dans le plus grand gisement de pétrole dans l'État du Rajasthan, cherche à modifier un contrat qui le rend passible de payer des redevances sur tout le pétrole brut produit à partir de la zone, même si elle possède un 30 pour cent enjeu. Le groupe de ministres se pencheront sur la position ONGC que les redevances peuvent être ajoutés au coût du projet, dont les partenaires sont autorisés à récupérer de la vente.

Deux options

«Mon propre ministère, le pétrole et le gaz naturel, a pris une position catégorique que la royauté doit être de recouvrement des coûts", déclara Reddy. «J'ai présenté deux options. L'une consistait à donner de libération conditionnelle, l'autre a été de donner congé, tout en laissant les recours juridiques ouverts pour les deux parties. Une décision sera prise entre ces deux options."

ONGC peut faire des 140 milliards de roupies (3,2 milliards de dollars) les paiements de redevances pour le compte Cairn India au cours de la vie du champ, selon la compagnie basée à New Delhi.

«Nous avons maintenant besoin que l'approbation du Cabinet, qui nous nous attendons à obtenir avant le 15 avril," Agarwal a dit hier. "Il ya une question de la redevance entre l'Inde et Cairn ONGC et qui doit être traitée séparément."

Mukherjee a déclaré aux journalistes à New Delhi que le groupe des ministres présentera son rapport sur l'affaire "peu de temps." Il n'a pas élaboré.

Cairn Energy s'est engagé à réaliser la transaction, le 15 avril, chef de la direction Bill Gammell a déclaré à New Delhi le 16 Mars.

- Avec l'aide de Anto Antony à New Delhi. Chacko John, Abhay Singh: Editors.

Pour en savoir plus: http://www.sfgate.com/cgi-bin/article.c ... z1Il2myiPr

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6 APR, 2011, 07.15PM IST,PTI
CCEA refers Cairn-Vedanta deal to GoM; buyout may be delayed

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CCEA refers $9.6 billion Cairn-Vedanta deal to GoM
Cairn India Ltd.
BSE
351.10
-03.87%-14.15
Vol:722463 shares traded
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-03.99%-14.55
Vol:5263273 shares traded
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NEW DELHI: In a move that is set to delay and possibly scuttle the biggest acquisition in India's energy sector, the Cabinet Committee on Economic Affairs today referred Vedanta Resources USD 9.6 billion buyout of Cairn India to a ministerial panel.

The move followed differences in the Cabinet panel on whether London-listed mining group with no experience in oil should be given unconditional approval for buying a company that owns the nation's largest onland oil fields or after attaching reasonable conditions.

"There are some complex issues. CCEA felt such a decision should not be taken in a hurry," Oil Minister S Jaipal Reddy told reporters after the meeting.

UK's Cairn Energy Plc, which is selling majority in its Indian unit, and Vedanta have set April 15 as the deadline for the conclusion of the transaction and a government decision is unlikely before that.

Both of them will have to go back to their shareholders for extending the deadline and it remains to be seen if Vedanta will still pay Rs 405 a share price considering government nod has not come in the past eight months.

Vedanta however said its open offer to acquire additional 20 per cent from minority shareholders of Cairn India will open as scheduled at April 11. Conclusion of open offer is intrinsic part of the transaction.

Sources said the CCEA did not take long to defer a decision after law ministry strongly backed protection of partner ONGC's rights in the deal.

Solicitor General of India had opined that Vedanta must agree to equitably share Rs 18,000 crore royalty ONGC pays in excess of its share from Cairn India's mainstay Rajasthan oilfields, before the government nod.

"It has been decided in the meeting of CCEA that the issue of clearance of sale of Cairn's share to Vedanta should be referred to a GoM. The GoM will be headed by Finance Minister Pranab Mukherjee," Reddy said.

Other members of the grouping, which has to deliberate and report back to the Cabinet on the issue, includes Law Minister M Veerapa Moily, Telecom Minister Kapil Sibal and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Reddy said there was no difference in the Cabinet on royalty, like other project cost and government levies, should be recovered from revenues earned from sale of oil. Profits between stakeholders including government is to be shared after that.

"On the question that the royalty should be cost recoverable, there are no differences (in the Cabinet). My own ministry took a categorically position that royalty should be treated as a cost recoverable item," he said.