(Alliance News) - Shares in Cairn Energy PLC shot up on Wednesday after a tribunal established to rule on its claim against the Indian government found in the company's favour, to the tune of USD1.2 billion.
Shares in the FTSE 250 oil & gas exploration and development company were trading 36% higher at 225.00 pence each on Wednesday morning in London.
Cairn's claim was brought under the terms of the UK-India Bilateral Investment Treaty.
The tribunal ruled unanimously that India had breached its obligations to Cairn under the treaty and has awarded Cairn damages of USD1.2 billion plus interest and costs, which now becomes payable.
The dispute between Cairn Energy and the Indian government stretches back to early 2014, when the Indian government froze Cairn Energy's 10% stake in Cairn India following the introduction of a retrospective tax legislation.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Capricorn Energy PLC (CNE)