Shell, Reliance Industries win in English High Court against Govt in PMT oil, gas field dispute

In a big win for Shell and its partner Reliance Industries, the English High Court has rejected Indian government’s challenge to the recovery of certain costs in the western offshore Panna-Mukta and Tapti oil and gas fields they operated. The government had sought USD 3.5 billion in dues from Reliance and Shell-owned BG Exploration & Production India Ltd based on an October 2016 partial award of an international arbitration tribunal over the recovery of certain costs from the sale of oil and gas produced from the Panna-Mukta and Tapti fields. The two firms had gone to the English High Court against the 2016 partial award.

Sources with direct knowledge of the development said the English High Court had previously directed the tribunal to reconsider certain issues. The tribunal subsequently in 2018 issued another award to uphold the two companies right to recover costs.