ONGC asks Cairn to submit details of deal with Vedanta

VedantaIndia's state-owned oil company, ONGC has asked Cairn to submit all the details related to its deal with Vedanta Resources.

The company which has stake in Cairn's India operations was caught off guard when the company decided to sell 51 per cent to Vedanta. This would mean that Vedanta, the London listed firm would have the majority stake and also the decision-making authority in it.

But after the Indian government intervened it was said that both the companies and in particular Vedanta will need to have the consent of ONGC before going ahead with anything.

ONGC currently owns 30 per cent stake in Cairn India's Rajasthan oilfields. These are the single biggest asset of Cairn in India.

The letter seeking details was sent by the NGC company secretary N K Sinha. Analysts believe that this will not have much of an impact on the deal unless and until the Oil Ministry itself does something.

In the communiqué sent to BSE and NSE, Sinha has said that the deal ONGC has with Cairn is of extreme importance. ONGC has all the relevant documents with it.