ET reported that state-owned Oil and Natural Gas Corp is likely to give its 'no-objection certificate' to Cairn Energy Plc's stake sale in its Indian unit to Vedanta Resources by the year end.

Mr Sudhir Vasudeva chairman of ONGC said that "Our Board had in principle given the NOC (no-objection certificate) in September.” He added that "The agreement is in the final leg. I am hopeful the NOC will be given before end of December."

The NOC will be given after Cairn Energy, its Indian arm Cairn India and the mining group sign a legally binding agreement accepting to share royalty and pay cess on the most important Rajasthan oilfields.

The need for a legal document has arisen because Cairn India insisted on ONGC giving a no-objection to the Cairn- Vedanta deal before agreeing to twin conditions that the government had set for clearing the USD 9 billion deal.

Cairn Energy, which holds a 52.1%t stake in Cairn India, plans to sell a 30% stake to Vedanta. The government had in June, approved the deal subject to consent from ONGC, which is a partner in its mainstay Rajasthan block.

(Sourced from ET)