RIL, BP slap arbitration notice on Govt for gas price hike

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Reliance Industries and its partners BP plc of UK and Canada's Niko Resources have slapped an arbitration notice on the government seeking implementation of a delayed gas-price rise, reported PTI.

The trio had on May 9 issued a "pre-arbitration notice" saying failure to implement the increase from due date of April 1 is preventing them from sanctioning investments of almost USD 4 billion this year, as per the media reports.

This arbitration notice wasn't complete as the partners did not name their arbitrator as required for dispute resolution under the Production Sharing Contract (PSC), sources privy to the development said.

RIL-BP-Niko on June 17 served a formal arbitration notice naming London-based Sir David Steel as its arbitrator, as per the reports in the media.

The three firms want the government to honour its commitment and implement revised natural gas prices upon expiry of the USD 4.2 per million British thermal unit rate for their eastern offshore KG-D6 gas fields on March 31, 2014, reported media.

Dion Global Solutions

Story first published: Monday, July 7, 2014, 9:20 [IST]
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