Davis Polk is advising Lazard & Co., Limited as sponsor to Vedanta Resources plc in connection with the entry by its Indian listed subsidiary, Vedanta Limited, into revenue sharing contracts with the Government of India for the exploration of oil and gas in 41 blocks in sedimentary basins throughout India pursuant to the Indian Open Acreage Licensing Policy. This is the first major auction of hydrocarbon blocks to take place in India since 2010.

Pursuant to the revenue sharing contracts, Vedanta Limited will have six years to perform exploration activities and will commit a total capital expenditure of $551 million thereon. The development and production period of each block will be of 20 years following discovery and approval of production, and Vedanta Limited will share a specified portion of the net revenue from each block with the Government of India. The transaction, the terms of which were announced on August 29, 2018 following the award of the 41 blocks to Vedanta Limited, requires the approval of the shareholders of Vedanta Resources, Vedanta Limited’s parent company, as a related party transaction under the U.K. Listing Rules. The Government of India is a related party by virtue of its holding of substantial equity interests in two subsidiaries of Vedanta Resources.

Vedanta Resources is a London-listed diversified global natural resources company. The group produces aluminum, copper, zinc, lead, silver, iron ore, oil and gas and commercial energy. It has operations in India, Zambia, Namibia and South Africa. Vedanta Limited, its majority owned subsidiary, is listed on the Bombay Stock Exchange and the National Stock Exchange of India and the New York Stock Exchange.

The Davis Polk corporate team includes partner Will Pearce, European counsel Jamie Corner and associate Marcelo Valenca. All members of the Davis Polk team are based in the London office.

Copy link to share post