17 August 2010;economictimes.indiatimes.com:Rajeev Jayaswal:NEW DELHI: UK-based Vedanta Resources’ move to pick up a majority stake in Cairn India will be scanned by security agencies as it involves indirect acquisition of the country’s oil and gas assets by a foreign firm, said a senior government official. The government is taking extra caution as the deal could set a precedence for similar acquisitions by foreign firms, including those from China, he said, requesting anonymity. “It is indirect acquisition of a national property, which should not be allowed without addressing security concerns,” he said, adding that the Rajasthan oil fields are vulnerable to growing terror threat from across the boarder. London-listed mining group Vedanta Resources, on Monday, said, it, along with group company Sesa Goa, would pick up a controlling stake in Cairn India from Edinburgh-based Cairn Energy for $6.65 billion and will offer to buy another 20% from minority stockholders. A senior oil ministry official said that the government will take necessary action after Cairn and Vedanta approach it formally. “Cairn and Vedanta are free to make any deal as per the law as long as it does not involve national assets,” he said. Earlier, oil minister Murli Deora had said that oil and gas assets belong to the nation and that the government is its real owner. Vedanta and Cairn are yet to approach the government for approvals. Both the firms declined to comment on whether the deal requires vetting by security agencies. Cairn Energy holds 62.4% in its BSE-listed Indian arm, which operates the country’s largest producing oil fields in Barmer, Rajasthan. The oil fields alone constitute over 90% of the firm’s asset value.
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