ONGC, Cairn in turf war over oil fields | business | Hindustan Times
Today in New Delhi, India
Jun 29, 2017-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

ONGC, Cairn in turf war over oil fields

While it remains to be seen how the jinxed $9.6 billion (R43,500 crore) acquisition of Cairn India by Anil Agarwal promoted- Vedanta Resources progresses further, what is however clear is that state-owned ONGC and Cairn India —who are joint partners in as many as 10 oil and gas acreages in India—are giving each other a tough time.

business Updated: Feb 07, 2011 22:20 IST
HT Correspondent

While it remains to be seen how the jinxed $9.6 billion (R43,500 crore) acquisition of Cairn India by Anil Agarwal promoted- Vedanta Resources progresses further, what is however clear is that state-owned ONGC and Cairn India —who are joint partners in as many as 10 oil and gas acreages in India—are giving each other a tough time.

ONGC and Cairn are sharing a strained partnership is evident from the hot exchanges that the companies have been having in their recent communications.

Cairn on 20 January sought "timely support from the management committee of Rajasthan oil block" for effective functioning of the Rajasthan oil field joint-venture between Cairn Plc and ONGC. The managing committee of the Rajasthan oil block comprises of ONGC, Cairn Energy Plc, Cairn Energy India, the director general of hydrocarbons (DGH) and petroleum ministry officials.

To this, ONGC (on January 24) conveyed its "strong displeasure" and termed it as "vain efforts by the operator (Cairn) to pass on this responsibility to the managing committee."

ONGC has also told Cairn that "the onus of timely meetings of the committee rests with the operator (Cairn) and the same cannot be passed on to other stake-holders."

Shifting the blame on Cairn, ONGC said that inspite of clear views of DGH and petroleum ministry on critical issues, finalisation of the committee meeting was held back by the operator (Cairn ) for reasons, best known to the Operator.

"These are tough negotiations, which at times get rough. There is no bad blood between the two companies otherwise," said a Cairn India executive. An ONGC management official said, he would not ik to make any official comments as the matter was sensitive.

Last week, the ONGC board, had passed a resolution requesting the petroleum ministry not to clear the $9.6 billion Cairn-Vedanta deal till an amicable settlement was reached on the royalty sharing issue.