NEW DELHI: State-run ONGC has received a sequence of three worldwide arbitration awards for a complete of Rs 1,000 crore in cost-sharing disputes with Petrobras of Brazil, ENI of Italy and Rocksource (now often called Pure E&P) of Norway greater than a decade after the worldwide gamers exited offshore exploration blocks in the Mahanadi, Krishna-Godavari and Cauvery basins.
The arbitrations had been initiated between 2014 and 2016 by way of advocate Okay R Sasiprabhu. Proceedings towards Petrobras and ENI had been in London, whereas it was Delhi for Rocksource/Pure E&P – the final of the three arbitrations to be awarded in Dec. ONGC moved a caveat petition in the Delhi High Court to defend the award.
All the arbitral awards had been unanimous, underlining a vote of confidence in the standard of ONGC’s work execution, which was questioned by not less than one of many three overseas companies to keep away from sharing prices.
Disputes pertain to dam MN-DWN-98/3 off the Odisha coast, KG-DWN-98/2 – which has began manufacturing lately – off the Andhra coast and CY-DWN-2001/1 off the Tamil Nadu coast.
ONGC had tied up with the overseas companies for these blocks between 2002 and 2011, the time when it was venturing into the frontier space of deep-water exploration and searching for expertise and experience. Under the sovereign contracts for the blocks, ONGC needed to drill three exploration wells in every block underneath the minimal work programme. The cost was to be shared by the companions.
All the 9 wells drilled, nonetheless, got here out dry. In between, the overseas companions introduced their exit and refused to share prices underneath varied pretexts, together with discovering fault with ONGC’s work execution.
In the arbitration towards Petrobras, ONGC was given an award of $50 million and curiosity towards declare of $60 million.
The award in case of ENI was $20 million and curiosity towards a declare of $33 million and in case of Pure, the arbitration gave ONGC the total quantity of $20 million.
The arbitrations had been initiated between 2014 and 2016 by way of advocate Okay R Sasiprabhu. Proceedings towards Petrobras and ENI had been in London, whereas it was Delhi for Rocksource/Pure E&P – the final of the three arbitrations to be awarded in Dec. ONGC moved a caveat petition in the Delhi High Court to defend the award.
All the arbitral awards had been unanimous, underlining a vote of confidence in the standard of ONGC’s work execution, which was questioned by not less than one of many three overseas companies to keep away from sharing prices.
Disputes pertain to dam MN-DWN-98/3 off the Odisha coast, KG-DWN-98/2 – which has began manufacturing lately – off the Andhra coast and CY-DWN-2001/1 off the Tamil Nadu coast.
ONGC had tied up with the overseas companies for these blocks between 2002 and 2011, the time when it was venturing into the frontier space of deep-water exploration and searching for expertise and experience. Under the sovereign contracts for the blocks, ONGC needed to drill three exploration wells in every block underneath the minimal work programme. The cost was to be shared by the companions.
All the 9 wells drilled, nonetheless, got here out dry. In between, the overseas companions introduced their exit and refused to share prices underneath varied pretexts, together with discovering fault with ONGC’s work execution.
In the arbitration towards Petrobras, ONGC was given an award of $50 million and curiosity towards declare of $60 million.
The award in case of ENI was $20 million and curiosity towards a declare of $33 million and in case of Pure, the arbitration gave ONGC the total quantity of $20 million.
