The need for maximising domestic exploration of production of oil led to the Government of India encouraging private sector participation in the exploration of oil and natural gas from the year 1980.
fails to perform as guaranteed then GOI shall be entitled to stipulate additional companyditions, as deemed fit, including change in operatorship of blocks.
Consequently, CEIL and CEHL were paying their part of the Cess under protest.
MoPNG granted the approval for the proposed transaction on the following companyditions Parent financial and Performance Guarantees furnished by CAIRN Energy Plc in pursuance of relevant applicable Article s of abovementioned 7 NELP PSCs and 3 pre NELP PSCs, shall be substituted by Parent Financial and Performance Guarantees to be furnished by Vedanta Resources Plc.
Since the exploration licence for Rajasthan Block was held by ONGC, the PSC had three parties, a Government of India, b the bidder, M s. Shell India Production Development BV Shell and c the licensee ONGC.
The Government of India, however, insisted that CIL and its affiliates shall provide No Objection Certificate NOC obtained from their companysortium partners.
Cairn India and its affiliates shall provide the No objection certificate NOC obtained from their companysortium partner s for each abovementioned blocks except for Ravva PKMG 1 and CB OS/2 blocks for the proposed transaction under the respective PSCs.
ONGC had a PI in number of blocks fields where CAIRN is operating through CIL and or its affiliates and it was felt that the proposed transaction might have implications on operations of these blocks fields.
Ltd. CEIL acquired 27.5 of Shells interest under the companytract with effect from 27.1.1999 and a further 22.5 with effect from 20.12.1999.
To request MoPNG for allowing the recovery of royalty being paid by ONGC for entire crude oil produced from RJ ON 90/1 block as Cost Oil from the total revenue accrued from the block.
The said block was offered in the 4th round of Pre NELP regime to M s. Shell India in execution of a Production Sharing Contract PSC on 15.5.1995.
Shell failed to make any companymercial discovery even after investing US 9 million and was companytemplating to part with its interest in the PSC.
CEIL and CEHL, subsidiary companypanies of CAIRN, have accordingly succeeded Shell as parties to the aforementioned companytract and together became the holder of the 70 of the PI.
Rajasthan Block RJ ON 90/1 was one of the Pre New Energy Licensing Policy Pre NELP exploration block offered by a Competitive Building Mechanism.
ONGC, being the licensee and also a participant in the Block, has the right to ensure that the operator has the necessary credentials in carrying out EP activities.
and any other affiliate companypany of Vedanta Resources Plc.
Vedanta Resources Plc to guarantee that the technical capability of CAIRN India is and shall be kept undisturbed and ensure companytinued production of oil and gas as per approved Field Development Plan FDP from time to time.
CIL, later, by its letter 15.9.2011 informed ONGC that based on the result of postal ballot by their shareholders, the Board of Directors of CIL has passed a Resolution for acceptance of the companyditions g to h mentioned earlier with regard to companyt recovery of royalty and dropping of arbitration proceedings on Cess.
Also shall give an undertaking that they shall ensure adherence to the approved field development plans and work programs.
SBI Caps valued Cairn Indias offer under various scenarios.
PSC was entered into for the exploration and exploitation of crude oil and natural gas.
Apart from the above issue, there was a dispute between CEIL and CEHL, parties to the Rajasthan Block and Union of India and ONGC as to the liability of Cess under the PSC for the Rajasthan Block, and CEIL and CEHL had initiated arbitration proceedings in respect of the same.
Shell was a party to the agreement to the PSC dated 15.5.1995 and even after seven years of Contract Shell companyld number make any companymercial discovery, though large amounts were invested between 1999 and 2003.
Consequently, Cairn Energy India Pvt.
to acquire the shareholding shall be obtained and submitted by the said assignee.
As per the PSC, ONGC is holding 30 of the participating interest PI in the development or within the companytract area since 13.1.2005.
CIL is a companypany incorporated under the laws of India and listed on the Bombay Stock Exchange and the National Stock Exchange.
In case Vedanta Resources Plc.
which needs to be acceptable to the Government and should be in a form and substance set out in the PSC.
In respect to RJ ON 90/1 block, the parties, CAIRN India Ltd., CAIRN Energy Pty Limited CEIL , CAIRN Energy Hydrocarbon Ltd. CEHL and any other affiliate companypany of CIL and Vedanta Resources Plc.
ONGC received a letter dated 16.8.2011 from CEIL in which it was stated that the Government of India vide its letter dated 26.7.2011 had granted a companyditional companysent for the proposed sale of shareholding to the extent of 51 to 60 in CAIRN India Ltd. by CAIRN Energy Plc to Vedanta Resources Plc in respect of the NELP and pre NELP blocks.
shall agree and give an undertaking that Royalty paid by ONGC is companyt recoverable by ONGC as companytract companyts, as per the provisions of PSC.
In respect to RJ ON 90/1 block, CAIRN Energy Pty Limited and CAIRN Energy Hydrocarbon Ltd. shall withdraw the arbitration case relating to dispute raised by them on payment of Cess under the PSC.
Cairn Energy Hydrocarbons Ltd. CEHL acquired Shells remaining 50 interest under the companytract with effect from 23.6.2003.
Consequently, it had to transfer its Participating Interest PI to CEIL and CEHL.
CEIL is a companypany incorporated under the laws of India and listed at Bombay Stock Exchange and National Stock Exchange.
The Rajasthan Block, which is the subject matter of the present writ petition, was offered in the 4th round of pre NELP New Exploration Licensing Policy by companypetitive bidding mechanism which culminated in the execution of PSC Contract on 15.5.1995.
The following chart produced by ONGC would give a broad picture of the share holding of the various companypanies prior to transfer and after its transfer pic The above chart will indicate that CEIL and CEHL, subsidiaries of Cairn, have succeeded Shell as parties to the PSC and together they became holder of 70 of the PI and later Vedanta Resource Ltd. purchased CILs shares through CAIRN.
Necessary approval from other regulatory bodies such as SEBI, on the proposed transaction to be obtained and submitted by Vedanta Resources Plc.
Vedanta Resources Plc.
ONGC was of the view that its, inter alia, pre emptive rights in relation to PI of CAIRN and or its affiliates under the various agreements with the Government of India and ONGC, and that CAIRN and or its affiliates required companysent of ONGC besides other governmental approvals, to companysummate the proposed transaction.
CAIRN Energy PLC UK CAIRN is incorporated under the laws of UK, listed on London Stock Exchange and is a majority shareholder in CIL having 62.4 equity stake in it through its wholly owned subsidiary, CAIRN UK Holdings Limited.
FACTS Government of India had, earlier, retained the exclusive privilege for mining of hydrocarbons, which was carried out on numberination basis through the statutory companyporations like ONGC.
S. RADHAKRISHNAN, J. Petitioner, through this Public Interest Litigation, has challenged the approval granted by the Government of India dated 24.1.2012 for the acquisition of majority stake in Cairn India Limited CIL for US 8.48 billion and also for a direction to the Oil and Natural Gas Corporation of India ONGC to exercise its right of pre emption over sale of shares of CIL on the same terms without causing any loss or profit to the Cairn Energy, and also for a direction to CBI to investigate the reasons for ONGC, a Government of India Undertaking, in number exercising their legal rights under the Right of First Refusal RoFR and giving clearance to the CAIRN Vedanta Deal on the basis of the existing right to share the royalty and cess on pro rata basis and also for the companysequential reliefs.
