Cairn says it is looking for mutually ‘acceptable’ solution to tax dispute

After discussions with the government over the last few days, Cairn Energy Plc said on Sunday it was hopeful that an acceptable solution to its tax dispute with the Indian government can be found, in order to avoid further prolonging and exacerbating the “negative issue” for all parties. However, the company said it was clear that it should continue to take all necessary steps to protect the interests of its shareholders.

It also said it was looking forward to being able to move on to further opportunities to invest in India, which continues to import the majority of the energy sources it consumes assuming a resolution to the dispute can be achieved. “Notwithstanding and without prejudice to our rights under the international arbitration award, we have discussed a number of proposals with the aim of finding a swift resolution that could be mutually acceptable to the Government of India and the interests of Cairn’s shareholders. Assuming such a resolution can be achieved, we look forward to being able to move on to further opportunities to invest in India which continues to import the majority of the energy sources it consumes,” Cairn Energy said in a statement.