Scottish oil firm Cairn Energy said today that it was unlikely to find out how much compensation it will be awarded in a tax dispute with India until later this year.
The row started in 2014 when Cairn was accused of not paying taxes owed after the formation of its Indian subsidiary.
Cairn commenced proceedings under the UK-India Bilateral Investment Treaty in 2015 following “retrospective taxation actions” undertaken by the Indian Income Tax Department.
It is claiming £1 billion in compensation.
The final hearings for the arbitration concluded during 2018.
But the arbitration panel said in December that a number of “procedural matters” had delayed its announcement on the award.
The panel recently said it was still unable to give any specific guidance on timing.
A spokesman for Cairn said today: “As a result of this, Cairn expects that the timetable for issuing the award will be more protracted than originally anticipated and is unlikely to be before late 2019.”
