Canadian firm Niko Resources is to appeal a decision against it by an arbitration panel in relation to work in the Hazira field off the west coast of India.
In a statement, the company said that the arbitration tribunal had issued an award in favour of the company’s joint operating partner of about $17.8 million, plus interest.
The company will now take its case to the Indian court system, to appeal the award.
According to the company’s statement, the dispute was in relation to the delivery of minimum quantities of natural gas to certain customers.
The company was unable to deliver the minimum quantities required, and its joint operating partner in the field delivered the shortfall volume from other sources.
The operating partner then filed for arbitration to recoup losses incurred as a result of the delivery of the shortfall volumes.