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(Alliance News) - Cairn Energy PLC on Tuesday said it "remains confident" in its position amid a long-running tax dispute with India, which has now gone to Dutch courts.
A tribunal ruled in favour of Cairn back in December, awarding the oil & gas explorer USD1.2 billion in damages, plus interest and costs.
"This ruling is binding and enforceable under international treaty law. Whilst India has sought to challenge the basis of the award through set-aside proceedings in the Dutch courts, we remain confident of our position and continue constructive engagement with the government of India whilst at the same time taking all necessary actions to protect our rights to the award and access the value of it as early as possible," Chief Executive Simon Thomson said ahead of the company's annual general meeting on Tuesday.
Thomson said Cairn is primed for its "next stage of growth". In March, Royal Dutch Shell PLC said it has agreed to sell upstream assets in Egypt's Western Desert to a consortium composed of Cairn and Cheiron Petroleum. The package of assets consists of Shell Egypt's interest in 13 onshore concessions and its share in Badr El-Din Petroleum Co.
The Egypt acquisitions are an "important first building block" for Cairn.
"This expands and diversifies our producing base with low-cost, sustainable gas-weighted production close to growing markets, and adds significant development and exploration growth potential. We are tremendously excited about the potential of these assets," CEO Thomson added.
"Together with our joint venture partner, Cheiron, we are actively engaged with Shell on transition arrangements. We continue to expect the acquisition to be completed in the second half of 2021 and we very much look forward to delivering the significant value these assets offer."
Also in March, Cairn said it agreed to sell its 20% interest in the Catcher field and 29.5% interest in the Kraken field, both in the UK, to Waldorf Production for USD460 million in cash, plus additional payments contingent on oil prices through to the end of 2025.
Completion of these disposals is still expected to occur in the second half of 2021.
Shares in the company were 1.6% lower at 168.80 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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