21st Jul 2020 10:36
(Alliance News) - Cairn Energy PLC on Tuesday said it has been informed by the Arbitral Tribunal that no significant delays are expected in relation to the timing of its ruling on Cairn's case against the government of India.
The FTSE 250 oil & gas exploration and development company said the tribunal has indicated that, while it has encountered some difficulties created by the Covid-19 pandemic, it does not expect significant delays and hopes to remain reasonably within the lead-time originally anticipated. However, it did not commit to a specific date for the ruling, but said instead it expects a "release of the award after the end of the summer".
Cairn Energy said it continues to have a high level of confidence in the arbitration and is seeking full restoration for losses of more than USD1.4 billion.
This comes as the latest development in the oil & gas firm's proceedings against India under the UK-India Bilateral Investment Treaty.
The dispute between Cairn Energy and the Indian government stretches back to early 2014, when the Indian government froze Cairn Energy's 10% stake in Cairn India following the introduction of a retrospective tax legislation.
Cairn previously said the Indian Income Tax Department seized dividends due to Cairn from its shareholding in Vedanta Ltd of around USD155 million, adding that the government offset a tax rebate of USD234 million due to Cairn as a result of overpayment of capital gains tax.
Shares in Cairn Energy were trading 5.1% higher at 137.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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