NEW DELHI: State-run ONGC has received worldwide arbitration for a complete of Rs 1,000 crore in cost-sharing disputes towards Petrobras of Brazil, ENI of Italy and Rocksource — now often known as Pure E&P — of Norway greater than a decade after the worldwide majors exited three offshore exploration blocks within the Mahanadi, Krishna-Godavari and Cauvery basins.
The arbitrations had been initiated between 2014 and 2016 via advocate Ok R Sasiparabhu.Proceedings towards Petrobras of Brazil and ENI of Italy had been launched in London and towards Rocksource/Pure E&P in Delhi. All of the awards in favour of ONGC had been unanimous, which could be seen as vote of confidence in its workmanship — one of many arguments put forth by the international corporations to keep away from sharing of prices.
The disputes pertain to blocks MN-DWN-98/3 within the Mahanadi basin off the Odisha coast, CY-DWN-2001/1 within the Cauvery basin spanning the prices of Tamil Nadu, Karnataka and Kerala in addition to KG-DWN-98/2 within the Krishna-Godavari basin off the Andhra coast.
ONGC had tied up with Petrobras of Brazil, ENI of Italy and Rocksource/Pure E&P for the blocks between 2002 and 2011, the time when wIndia’s flagship explorer as venturing into the frontier space of deepwater exploration and in search of expertise.
Below the manufacturing sharing contract with the federal government, three exploration wells had been to be drilled in every block beneath the minimal work programme and the companions had been to share the prices. Altogether 9 wells had been drilled however all of them got here out ‘dry’. In between, the international companions introduced their exit and averted paying their share of prices beneath varied pretexts, together with discovering fault with ONGC’s work execution.
Within the arbitration towards Petrobras, ONGC was given an award of $50 million with curiosity towards a declare of $60 million. The award in case of ENI was $20 million with curiosity towards a declare of $33 million and in case of Pure, the arbitration gave ONGC the complete quantity of $20 million — altogether price Rs 1,000 crore for ONGC.