Government criticised on Ravva
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,†we hear. “There’s no legal basis whatsoever for the Indian government to withhold payment.
†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,†adds a source.
“It’s a clear breach of the PSC payment mechanism.â€