The government has won a major portion of the $1 billion arbitration with Reliance Industries and British firm BG Group over recovery of cost in western offshore Panna/Mukta and Tapti oil & gas fields.
A three-member London-based arbitration panel ruled in favour of the government in some of the 69 clauses of dispute that were listed by the RIL-BG combine. A few of the clauses under an arbitration initiated by the private firms in December 2010 went in favour of RIL-BG, an official said.
The big-ticket issue of inclusion of certain items in the cost recovery went in favour of the government with the arbitration panel holding that RIL-BG cannot include such items.
However, this is only an interim award and final arbitration award would follow procedural hearings due from December 18.
RIL is in the process of reviewing the FPA and the dissenting opinions in detail and shall be taking the appropriate next steps based on legal advice.
RIL and BG hold 30 per cent stake each in the Panna/Mukta and Tapti fields while the remaining is with state-owned Oil and Natural Gas Corp (ONGC).
Leave a Reply
You must be logged in to post a comment.