Deal gives ONGC the jitters

State-owned Oil and Natural Gas Corporation (ONGC), Cairn’s principal joint venture partner in India, both in its producing fields and in the exploratory assets, is concerned over the potential ownership change at its partner.

The oil and gas company is concerned over the ‘inexperience’ Vedanta has in oil exploration.

With Cairn being the chief operator in the flagship Rajasthan blocks and in Ravva, Lakshmi and Gauri gas fields in Gujarat’s Cambay offshore basin, ONGC would not want Vedanta to become the operator after the deal.

“We cannot afford to be laid back and would like to know how this deal would influence the operations of the gas fields,” sources familiar with the developments said.

ONGC is yet to approach the petroleum ministry or Cairn on the issue. It is set to do so if the company perceives its interests being compromised.