Cairn arbitration award may be protracted, not expected before 2019-end

UK's Cairn Energy on Tuesday said the arbitration process against India on imposition of a Rs 10,247-crore retrospective tax demand is likely to be protracted and a decision is not expected before late 2019.

"The formal hearings and submissions in respect of Cairn's claim under the UK-India Bilateral Investment Treaty concluded in 2018 and the arbitration panel is preparing its final award," the company said in its half-year results for 2019.

The three-member panel, it said, had originally indicated issuance of an award as expeditiously as possible. But "workload and the number of matters before the panel have meant that the timetable for issuing the award will be more protracted than originally anticipated and the award is, therefore, unlikely to be before late 2019," it said.

"Drafting of the award by the tribunal is ongoing and Cairn continues to have a high level of confidence in the merits of its claim," Cairn Energy said, adding that it was confident of success in the arbitration.

Cairn Energy is seeking full restitution for losses totalling more than USD 1.4 billion resulting from government "expropriation of its investments in India in 2014, and India's unfair and inequitable treatment of those investments, due to the imposition of retrospective tax measures."