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Cairn Energy on Tuesday said that the resolution of a tax dispute with India would enable the company to return $700 million to its shareholders via special dividend and buyback. It further stated that the Egypt acquisition is advancing to completion with transition planning under way. The acquisition is likely to be completed in the third quarter of FY21.
Govt reaches out to Cairn, other companies
“The expected near-term resolution of the India tax dispute would result in a refund to Cairn by the Government of India of ₹79 billion (approximately $1.06 billion). In accepting the terms of the new legislation in India, Cairn would be required to withdraw its international arbitration award claim, interest and costs and to end all legal enforcement actions in order to be eligible for the refund,” Cairn Energy said in its half-year report.
Divestment under way
Meanwhile, the company also said that it expects to complete divestment of Cairn’s interests in the Kraken and Catcher fields in the UK North Sea in the fourth quarter of 2021.
With President’s assent, retro tax formally buried
In addition, the company said that during the first half of 2021 it posted a revenue of $5 million as against $0.2 million during the same period of previous year. The pre-tax loss stood at $87.4 million in the first six months ended on June as against $83.9 million in the same period of previous year.
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