ONGC may have to pay USD 13 bn for Rajasthan block

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) may have to pay over USD 13 billion if it were to exercise its pre-emption or right of first refusal to buy Cairn India in the giant Rajasthan block.

State-owned Oil and Natural Gas Corp (ONGC) may have to pay over USD 13 billion if it were to exercise its pre-emption or right of first refusal to buy Cairn India in the giant Rajasthan block.

Cairn India holds 70 per cent operator interest in the 6.5 billion barrels Rajasthan block that is at the centre of its parent, Cairn Energy Plc’s USD 8.48 billion deal to sell its majority stake in the company to Vedanta Resources.

At Rs 355 a share (the price at which Vedanta is acquiring Cairn Energy shares), Cairn India is valued at over Rs 67,355 crore or USD 14.6 billion. Almost 90 per cent of this value is because of the Rajasthan block that can produce 240,000 barrels of oil per day (12 million tons per annum).

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