While Cairn is happy enough exiting the country in less than three years, with Mangala having just ramped up this year, Vedanta is unlikely to get away with the audacious offer very quickly as the government vets its options. Cairn has shared Mangala fields with ONGC ( Interest in one block of 30%) and also the field in KG Basin is 51 owned by ONGC 

ONGC, GAIL and OIL in consortium to bid for Cairn stake

Because of the ownership interest ONGC is likely to practice its right of first refusal as the Vedanta sale may make its own part-shares worth much less and limited to the oil take everyday. Having made such momentous finds and being a specialist ONGC would be well within its rights to exercise its option for control. It has already received $3 billion worth of credit lines in the newly created consortium

Posted via email from The investment blog on Post