Government criticised on Ravva

Vol 13, PW 15 (14 Jan 10) News in Brief
     

Ravva partners are growing increasingly impatient at the government’s unwillingness to back down in an eight-year profit petroleum dispute that shows no sign of ending.

“The government is happy to offtake 100% Ravva production but pay nothing,â€‌ we hear. “There’s no legal basis whatsoever for the Indian government to withhold payment.

â€‌ In the days ahead lawyers for the oil ministry are preparing an appeal in the Federal Court of Malaysia (equivalent to India’s Supreme Court) against a ruling by the country’s Court of Appeal on September 15 last year in favour of consortium partners Cairn India, Videocon Petroleum, ONGC and Marubeni-owned Ravva Oil. In India meanwhile, IOC-owned Bongaigaon Refinery and the HPCL-owned Vizag refinery continue to offtake dwindling Ravva production of 30,000 b/d without paying for it! “The government is defaulting on payment,â€‌ adds a source.

“It’s a clear breach of the PSC payment mechanism.â€‌