UK s Cairn Energy Plc has offered to forego USD 500 million and invest that amount in any oil and gas or renewable energy project identified by the Indian government if New Delhi agrees to honour an international arbitration award and returns the value of loss it incurred because of being taxed retrospectively, sources said. The Scottish firm invested in the oil and gas sector in India in 1994 and a decade later it made a huge oil discovery in Rajasthan. In 2006-07, it listed its Indian assets on the BSE. Five years after that the government passed a retroactive tax law and billed Cairn Rs 10,247 crore plus interest and penalty for the reorganisation tied to the flotation.
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Union finance minister Nirmala Sitharaman on Friday stated the government s stand on appealing the $1.2 billion arbitration awarded which it lost against Cairn Energy, stating that it is her duty to appeal where the country’s sovereign authority to tax is questioned. “India s sovereign authority to tax cannot be questioned by anybody. And even if it’s an award of arbitration if there is a question about India s sovereign right to tax, I will appeal, it is my duty to appeal,” Sitharaman said. Sitharaman added that as a sovereign nation, the government of the day will have to question that. “To question the authority of a government to even tax, I’m sorry I will appeal on that,” she said.
Cairn Oil & Gas seeks bids for gas from Rajasthan block
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Cairn Oil & Gas seeks bids for gas from Rajasthan block
PTI / Feb 15, 2021, 20:15 IST
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(Representative image)
NEW DELHI: Mining magnate Anil Agarwal s Vedanta Ltd on Monday invited bids for the sale of natural gas from its prolific Rajasthan block at rates equivalent to the price of imported LNG from the spot market or Brent oil price.
Cairn Oil & Gas, Vedanta s oil and gas arm, produces about 3.5 million standard cubic meters per day of gas from its largely oil-bearing block in Rajasthan, the firm said in a notice.
The output is being ramped-up to more than 5 mmscmd.
Cairn Oil seeks bids for natural gas from Barmer
February 15, 2021
The price will be linked to spot prices of imported LNG, benchmarked against the Brent gas price - via Bloomberg
The price will be linked to spot prices of imported LNG, benchmarked against the Brent gas price - via Bloomberg×
Vedanta subsidiary produces about 3.5 mmscmd of gas from this block
Cairn Oil & Gas, a subsidiary of Vedanta Limited, has invited bids from prospective buyers of natural gas from its Rajasthan block.
“The company invites Expression Of Interest (EOI) from interested parties with proven capabilities and demonstrated presence in the natural gas business to participate in the national competitive e-auction process for the purchase of natural gas produced from our flagship block in Barmer, Rajasthan,” the firm said in a statement on Monday.