press trust of india
New Delhi, July 18: The government has sought about $3 billion from Reliance Industries, Royal Dutch Shell and ONGC following a “partial” arbitration award in its favour over cost recovery in Panna/Mukta and Tapti (PMT) oil and gas fields in the Arabian Sea.
The Directorate General of Hydrocarbons (DGH) in May-end had slapped the demand notice on them, which included interest and certain other charges over a gross amount it calculated following the October 2016 final partial award (FPA), sources in the government and the PMT joint venture said. The notice does not contain any date for making the payment or the consequences that would follow if the payment is not made, they said.
Besides, they added, it was issued without waiting for the arbitration panel to give its final award after hearing rejoinders from the parties to the dispute and, in the last stage, quantifying the amount payable.
When contacted, a RIL spokesperson acknowledged being notified of “computation of the purported share of government of India’s profit petroleum and royalty alleged to be payable by the contractor pursuant to the Government of India’s interpretation of Arbitration Tribunal’s Final Partial Award dated October 12, 2016.” Terming the demand notice as “premature,” RIL said the “quantification of liabilities (if any) of the parties arising out of the Partial Award have to be determined by the Arbitration Tribunal after the Parties have made their respective submissions on quantification.”