UNION OF INDIA Vs. NIKO RESOURCES LTD

JUDGEMENT

(1.) Introduction

(2.) O.M.P. No.944 of 2011 has been filed by Niko under Section 9 of the Act praying for a direction to permit Niko to deposit in this Court MoPNG's share of unpaid profit petroleum or deposit it in an escrow account during the pendency of O.M.P. No.192 of 2010.

(3.) The dispute between the parties concerns the cost of construction of a 14 km long 36" diameter pipeline from the Hazira Field to Mora village in the sum of Rs. 93.27 crores which Niko claims is part of 'development cost' which it is entitled to recover from the UOI. Niko also seeks to recover Rs. 44.76 crores towards production cost incurred in operating the said pipeline as well as reimbursement of the excess 'profit petroleum' paid to UOI. The case of the UOI is that the said pipeline cannot be granted 'cost recovery' status as it is outside the scope of the PSC. In order to examine the dispute in some detail, reference may be first made to the provisions of the PSC.