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. This is an interim award; final arbitration award would follow hearings due from December 18.
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