On Monday, ending days of speculation Cairn plc and Vedanta Resources announced a US $ 9.6 billion deal with Vedanta buying out 51 per cent of Cairn India, the fourth laregst producer of oil and gas in India – - well over 1,000 times the original price. In 1997, Cairn paid US $7million for fields that Royal Dutch Shell thought were dry. The fields now produce 90,000 barrels of oil a day, with plans to increase that to more than 125,000 barrels.

Who said what about the deal

Anil Agarwal Chairman Vedanta Group: It is the next level to go to, after metals and mining. From childhood, I have been hearing that 70 per cent of India’s oil requirements are imported. At the same time, I also knew that India has huge oil reserves. Cairn India has one of the largest onshore blocks, that too in Rajasthan, which is the backyard of Hindustan Zinc. So we thought, why not look at this asset? Cairn India also has the best management team, which we will retain. We’ve never changed any of the existing management in any of the companies that we acquire.

Rahul Dhir, CEO Cairn India:  We are very particular that we get to retain the brand, particularly since we had brought in a whole lot of value to it. Cairn Plc will need to hold a minimum 10 per cent in Cairn India in order to retain the brand. It will lose this right if its stake falls below 10 per cent.

Bill Gammell, Chairman Cairn plc: We can’t say about new areas but I can say that strategy A, B and C is Greenland.

A London-based trader: The question is can lightning strike twice? Gammell has been proved right in India but is Greenland really comparable? It’s a tempting but tough call.

S Sundareshan, petroleum secretary: ONGC has not yet raised any concerns on the Cairn India -Vedanta Resources deal. He said the government would take into account ONGC’s views.

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