India has ordered a trio of firms, including Shell, to pay a combined $3billion fine following arbitration, a news report said.
The dispute over the Panna Mukta oil field when in favour of the Indian Government, the Economic Times reported, citing sources familiar with the matter.
Reliance Industries and Shell have appealed the decision in a UK court, the report said.
The arbitration panel sided with the government in ruling that profit from the fields should be calculated after deducting the prevailing tax of 33%, and not the 50% rate that existed earlier.
The decision will significantly increase the government’s share of profit petroleum.