No final arbitration award due, says RIL

RIL HAS MOUNTED A STRONG COUNTER TO THE GOVT PETITION IN THE DELHI HC SEEKING TO BLOCK ITS $15 BN DEAL WITH ARAMCO

NEW DELHI: Reliance Industries Ltd (RIL) has mounted a strong counter to the government petition in the Delhi high court seeking to block its $15 billion deal with Saudi Aramco, saying the petition is an abuse of process as no arbitration award has fixed any final liability of dues on the company.

In a counter affidavit, Reliance said it was a “falsehood” to say that the arbitration tribunal had passed an award requiring the company and its partners to pay $3.5 billion to the government. It said the petition is an abuse of process as “it portrays that a sum of money is due and payable under the final award and purports to compute the money payable on a basis neither found in the arbitration award nor disclosed in the petition.”

The government, it said, has calculated on its own volition the revised figure of its share of profit from oil and gas production allegedly due by extrapolating the purported finds.

T h e a f f i d a v i t c a me in response to the government moving the Delhi high court seeking to block Reliance selling 20% stake in its oil and chemical business to Saudi Aramco for $15 billion, in view of pending dues of $3.5 billion in PannaMukta and Tapti oil and gas fields.

An international arbitration tribunal issued a partial award in October 2016 in the dispute between the Government of India (GOI), BG Exploration & Production India Ltd (BG) and RIL regarding the Panna-mukta and Tapti Production Sharing Contracts (PSC).

The tribunal in its 2016 award determined certain issues of principles. Pending determination of all issues before it, appropriately, it did not award any monetary sums.

Quantification of amounts, if any, by the tribunal is to be done when a l l i s s ues have been decided.

Certain parts of t he 2016 award were challenged by BG/ RIL before an English court wherein it decided some parts of challenge in favour of BG/RIL and directed the arbitration tribunal to reconsider those parts of the 2016 award. The tribunal, having reconsidered, issued a n o t h e r p a r t i a l a ward in December 2018 which was in favour of BG/RIL.

While this challenge was pending in the English court, GOI unilaterally calculated certain amounts, based upon its i nt e r pret a t i o n o f t he 2 0 1 6 award, which the government alleges are payable by Oil & Natural Gas Corp. (ONGC), BG and RIL.