Mumbai, Aug 16 (IANS): Miner Vedanta Resources Monday said it will acquire 51-60 percent of oil producer Cairn India in a deal worth $8.5-9.6 billion to enter the oil and gas space and become a global resources player.

The all-cash deal will see Vedanta Resources Plc hold a 31-40 percent stake in Cairn India directly, while its Indian subsidiary Sesa Goa will control 20 percent, Vedanta said in a statement to the London Stock Exchange.

The company will acquire these shares from Cairn India's Edinburgh-based parent company, Cairn Energy, for Rs.355 a share and also pay a non-compete fee of Rs.50 per share.

The transaction will be funded through debt and cash resources and close by first quarter of 2011.

In a regulatory filing at the National Stock Exchange, Sesa Goa said it would pay about $3 billion in cash for Cairn India's 20 percent stake.

"The stake would be acquired under an open offer by Sesa Goa along with Vedanta. If there is insufficient take up in the offer, Sesa Goa will acquire the balance as part of the Vedanta Group's acquisition of a 51 percent-60 percent stake in Cairn India," said the Vedanta subsidiary.

The deal, however, has to get the government's nod as it is mandatory for all production sharing contracts private explorers sign to seek approval before a stake in a field is sold.

"Domestic oil and gas blocks are national assets. Energy firms are merely contractors. A third party can't be allowed to manage national assets without the government's permission," Petroleum Secretary S. Sundareshan had said Friday.

Cairn Energy holds 62.36 percent in its Indian unit, which was propelled into a major player in the energy space after its huge oil find in Barmer, Rajasthan, in 2007.

The average crude oil production from Mangala oilfield situated in the Barmer block is currently over 44,300 barrels per day (bpd) and is in the process of being ramped up to the plateau rate of 125,000 barrels.

The block is estimated to hold reserves of 6.5 billion barrels of energy equivalent.

Cairn India is the operator of the Barmer block in Rajasthan with a 70 per cent participating interest and its joint venture partner ONGC has a 30 percent participating interest.

Cairn India's other assets include participating interest in the Ravva oil and gas field in the Krishna-Godavari Basin where state-run ONGC, Videocon and Ravva Oil are partners. The Ravva terminal has the capacity to handle 70,000 bpd and 95 mmscfd of natural gas, and has a capacity to store 1 million barrels of crude oil onshore.

Cairn India holds material exploration and production positions in 12 blocks in west and east India along with new exploration rights elsewhere in the country and Sri Lanka.

"The proposed acquisition significantly enhances Vedanta's position as a natural resources champion in India. Cairn India's Rajasthan asset is world class in terms of scale and cost, delivering strong and growing cash flow," said Anil Agarwal, executive chairman of the London-based Vedanta.

Cairn India touched an all-time high of Rs.368, up 3.5 percent from its previous close at Rs.355.45. However, profit booking pulled down the stock over 6 percent in afternoon trade to rule at Rs.334.

The Sesa Goa scrip also tanked, falling 7.2 percent to rule at Rs.328.55. It had closed Friday at Rs.354.05.

Vedanta is a diversified group with its primary operations in India. Its subsidiaries include Sterlite, Hindustan Zinc, and Sesa Goa.