ONGC unlikely to exercise pre-emption rights on Cairn- Vedanta deal
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  • Reports suggest that the State-run Oil and Natural Gas Corporation (ONGC) is not likely to exercise its pre-emption rights to stop UK owned Cairn Energy Plc from selling majority stake in its Indian arm to Vedanta Resources. Earlier, ONGC had not acquired Cairn India despite having two opportunities. Earlier, ONGC had chosen not to exercise its pre-emption rights when in 2002 Cairn Energy bought out Royal Dutch Shell's stake in the prolific Rajasthan block for only USD 11 million. ONGC had allowed itself missing a chance to acquire the company in 2004-05, which by then had discovered the giant Mangala oil field in the Rajasthan block, for about USD 4 billion.1