(ET)
India’s oil ministry has ordered Reliance Industries, Royal Dutch Shell and Oil & Natural Gas Corp to pay $3.8 billion as the increased share of the government’s earnings from the Panna-Mukta and Tapti fields after a UK court rejected challenges to the arbitration award that went against the companies, people familiar with the matter said.
The liability is to be shared by the companies in proportion to their interests in the oil and gas fields in the Arabian Sea – ONGC , RIL and Shell . The demand was made a few days ago. Reliance and Shell separately said a demand for payment at this stage was premature because the arbitral tribunal is yet to determine the final outcome of the proceedings. Reliance and BG (taken over by Shell) had invoked arbitration against the government in December 2010 after a dispute over the state’s share of profit and royalty from Panna-Mukta and Mid and South Tapti contract areas off the west coast.
