Govt moves HC to recover $3.8 bn from RIL, Shell, ONGC

The government has moved Delhi High Court to enforce a $3.8 billion recovery from Reliance Industries (RIL), Shell and ONGC following an English court ruling over its share from the PannaMukta and Tapti fields in western offshore, Oil Minister Dharmendra Pradhan said on Wednesday.

The liability is to be split between the three companies in proportion to their stake in the fields. Stateowned Oil and Natural Gas Corp (ONGC) has 40 per cent interest while RIL and Shell hold 30 per cent each.

Pradhan said that based on the Final Partial Award (FPA) dated October 12, 2016, the Directorate General of Hydrocarbons (DGH) had on May 25, 2017, raised demand for $3.8 billion on ONGC, RIL and Shell towards government of India share of profit petroleum and royalty. RIL and Shell challenged the FPA before the High Court in London. ONGC was not party to the arbitration.

"The High Court, London rejected the petition filed by RIL and Shell on April 16, 2018, except on one issue which was remanded to the Arbitral Tribunal," he said.

In December 2010, BG Exploration & Production India, which was subsequently acquired by Shell, and RIL, initiated an arbitration against the Government of India (GoI) after a dispute over the state's share of profit and royalty from PannaMukta and Mid and South Tapti contract areas off the west coast.