Cairn Energy has entered into certain undertakings with India which would allow for the refund of taxes under a long-running billion dollar dispute with the country, sending the British company's shares nearly 3% higher on Wednesday.
The news comes after the oil and gas producer said in September it was considering undertakings with the Indian government after changes were made to a retrospective tax law at the heart of the row.
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London-listed Cairn said it would start filing the necessary documents and work with New Delhi to expedite the refund of roughly Rs 7,900 crores ($1.06 billion).
"Cairn will commence the filing of the necessary documentation ... intimating the withdrawal, termination and/or discontinuance of various enforcement actions," the company said in a statement.
Cairn added it expects to pay by early 2022 the special dividend announced in September. The dividend and a share buyback were contingent on the settlement of the dispute.
In August, India proposed scrapping the 2012 retrospective tax law and said it would refund companies including Cairn and Vodafone.
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