Arguments close in Ravva arbitration with ministry

Vol 8, PW 9 (28 Jul 04) News in Brief
     

Resolution of two arbitration cases between the oil ministry and the Cairn-led Ravva consortium are drawing to a close.

On 23rd July the oil ministry and Ravva partner Petrocon closed arguments before a London arbitration tribunal. In this case - which relates to the calculation of profit petroleum due to the government from the Ravva consortium - a ruling is expected in September.

Arguments in a parallel arbitration between the oil ministry and Ravva partners Cairn and Marubeni closed in The Hague in May and a ruling is expected next month. Here, the ministry claims the Ravva consortium should have been paying 60% profit petroleum since 2000.

According to us the Ravva consortium has moved into the next (higher) level of profit petroleum payment, says a ministry source. But the consortium thinks it shouldnt be paying anything more than 35%.

If the ministry wins the case it could receive $350m in past profit petroleum arrears.