The group had previously been hoping that an arbitration panel handling its claim against India under the UK-India Bilateral Investment Treaty would make a decision by the end of 2019.
In an update to investors, Cairn noted: “The Arbitral Tribunal has indicated that, whilst it is not yet able to commit to a specific award release date, it expects to be in a position to issue the award in the summer of 2020.
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Hide Ad“Cairn continues to have a high level of confidence in the merits of its claims in the arbitration and is seeking full restitution for losses of more than $1.4bn (£1.1bn).”
Proceedings
The firm commenced proceedings against India in 2015 following retrospective taxation actions undertaken by the Indian income tax department a year earlier.
The lengthy tax dispute centres on restructuring undertaken by Cairn Energy ahead of the flotation of its Indian unit in 2007.
Meanwhile, Cairn has made a disappointing start to its drilling programme off the coast of Mexico. The group said the first well sunk, to a depth of 2,056 metres, was found to be dry and would be permanently plugged and abandoned.