India And The Cairn Energy Conundrum: It's A Wrap

Cairn Energy PLC ("Cairn Energy"), now renamed Capricorn Energy, is one of Europe's leading independent oil and gas exploration and development companies. Over the last few years, the Government of India and Cairn Energy have been involved in a dispute related to a retrospective tax that was imposed on Cairn Energy by the Government of India. We have, in our previous  Article, summarised this dispute and the ensuing arbitration order passed in favour of Cairn Energy.

Since the conclusion of the arbitral proceedings, India and Cairn Energy have been shuttling between different proposals aimed at settling the dispute. Cairn Energy has also simultaneously been trying to enforce the arbitration award it had won against India in December 2020. Cairn Energy has since approached courts in several countries to enforce the arbitral award. The arbitration tribunal had ordered India to pay approximately $1.2 billion plus interest and cost to Cairn Energy.