BEFORE THE ARBITRAL TRIBUNAL COMPRISING
Justice S.P. BHARUCHA
Justice G.B. PATNAJK
Justice V.N. KHARE
In the Matter of Arbitration Dispute between:
M/S Hardy Exploration & Production (India) Inc. v Government of India, Ministry of Petroleum & Natural Gas
In the present dispute between Hardy Exploration and Production (India) Inc. and Government of India, Ministry of Petroleum & Natural Gas a Production Sharing Contract had been entered into between the President of India. Acting through Joint Secretary, Ministry of Petroleum and Natural Gas. and Oil and Natural Gas Corporation Limited (ONGC) and Vaalco Energy Inc; a company established under the laws of United States of America (VAALCO): Hindustan Oil Exploration Company Limited, a company established under the laws of India (HOTC) and Tata Petrodyne Ltd., a company established under the laws of India (TPL) on 19th November, 1996 in respect of the contract area identified as Block CY-OS/2. Article 28 of the said agreement provides for assignment of interest. The contract area was 5010 Sq. Kilometers.. ..
It is declared that the discovery made by the Claimant and GAIL is NANG.
It is further declared that the order of relinquishment of the block by the Ministry f Petroleum and Natural Gas was illegal, being on the erroneous impression that the discovery was Oil. That order of relinquishment is declared to be null and void. It is ordered that the parties shall be immediately relegated to the position in which they stood prior 10 the relinquishment and the block shall be restored to the Claimant. The Claimant shall be entitled to a period of 3 years from the date on which the block is restored to it to carry out further appraisal. If on the basis of the result or such appraisal, the Claimant forms the opinion that NANG has been discovered in commercial quantities then it shall so intimate to the Management Committee. The Management Committee shall be entitled, in accordance with Article 21.4.3, to review the proposed appraisal program filed by the Claimant.
The Tribunal also awards and directs that the Respondent shall pay to the Claimant interest on the amount spent by the Claimant in the sum of Rs. 500 crores, from the date of relinquishment till the date on which the block is restored to the Claimant pursuant to the award.. ..