Cairn Energy Enters Arbitration with Indian Government
Cairn announces that, in line with the dispute resolution provisions of the Ravva Production Sharing Contract, it has commenced arbitration proceedings with the Government of India.
The arbitration proceedings are in respect of various disputed items which impact upon the calculation of the Post Tax Rate of Return and related shares of cost and profit oil under the PSC. It is anticipated that the proceedings may continue for some considerable time before an award is made.
Cairn has entered into two previous arbitrations with the Government of India under the PSC, both of which were found in Cairn's favor.
Cairn holds a 22.5% equity interest in Block PKGM-1 (Ravva). The remaining interests are held by Oil and Natural Gas Corporation (40%), Videocon Petroleum Limited (25%) and Ravva Oil (Singapore) Pte Limited (12.5%).