Abstract

The subject of this caselet is the oil and gas exploration market in India. The new exploration and licensing policy (NELP) and its effects are also focused on. The caselet discusses the controversy between Cairn Energy PLC and ONGC over the payment of production tax (cess). It also discuss at length the actions of the petroleum ministry to resolve the problem and the refusal of Cairn Energy to pay the cess and royalty

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Progress under NELP
• Controversy between Cairn Energy PLC and ONGC over the payment of production tax (cess)
• Refusal of Cairn Energy PLC to pay the cess
• Law Ministry’s decision over the payment of statutory dues of royalty
• Dispute between Cairn Energy PLC and Petroleum Ministry

Keywords

Crude oil, petro-products, New exploration and licensing policy (NELP), Cairn Energy PLC, Declaration of Commerciality, Thar desert, Field Development Plan, Oil and Natural Gas Corporation (ONGC), Petroleum Ministry, production tax (cess), Law Ministry, Production Sharing Contract (PSC)