Delhi HC notice to Pure E&P AS on ONGC's plea for payment of arbitral award
This story was originally published at 20:34 IST on 18 November 2024
Register to read our real-time news.Informist, Monday, Nov. 18, 2024
NEW DELHI – The Delhi High Court on Monday issued notices to Pure E&P AS and other parties on Oil and Natural Gas Corp. Ltd.'s plea seeking deposit of balance payment of INR 1.3 billion with interest, arising out of an arbitral award. The high court passed an ex-parte order against DNB Bank ASA to freeze the amount lying in the escrow account where the respondents had deposited the arbitral award money.
In 2003, the Centre and ONGC had entered into a production sharing contract with respect to Block CY-DWN-2001/1 in the Bay of Bengal. In 2008, ONGC signed a memorandum of understanding with Pure E&P, then Rocksource, whereby the parties agreed for cooperation in respect of exploration and production of hydrocarbon resources in India and abroad. Thereafter, a farm out agreement was executed between the parties, where ONGC agreed to assign and transfer an undivided 10% participating interest in the block to Pure E&P.
In 2013, disputes arose between ONGC and Pure E&P and the case was referred to arbitration. In December, an arbitral tribunal asked Pure E&P to pay $29 million to ONGC. In April, Pure E&P said it was willing to make partial payments under the award and unwilling to fully satisfy the same. Pure E&P further indicated that it would be remitting the said sums in Indian rupees and not in the currency of the contract, which was United States dollars. Accordingly, Pure E&P remitted a sum of INR 1.14 billion only in ONGC's bank account, with a shortfall of about $16.44 million as on Sept 30. Consequently, ONGC moved the high court seeking payment of full arbitral award money.
On Monday, shares of ONGC closed 0.06% lower at INR 250.65 on the National Stock Exchange. End
US$1 = INR 84.39
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
