RIL, BP and NIKO issue a arbitration notice to Indian government
Posted on May 11 2014 | IBNS
Mumbai, May 10 : RIL, BP and NIKO have issued a notice of arbitration on Friday to the India government seeking the implementation of the "Domestic Natural Gas Pricing Guideline 2014" notified on Jan 10 this year.
"The continuing delay on part of the Government of India in notifying the price in
accordance with the approved formula for the Gas to be sold has left the Parties with no other option but to pursue this course of action. Without this clarity, the Parties are unable to sanction planned investments of close to USD 4 billion this year," RIL said in a statement.
"In addition, this will also delay the ability of the Parties to appraise and develop other significant discoveries made last year. Overall, the Parties were planning to invest USD 8-10 billion in the next few years to significantly increase production from the KGD6 block. This domestic production is essential for meeting India's energy needs and will also help conserve foreign exchange which is required for imports of natural gas into India at the present time. All of this requires clarity on pricing," it said.
RIL said the three parties shall endeavour to work with the government to achieve a prompt and efficient resolution of this dispute.