Introduction

1. Oil India Limited (‘OIL’) has in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 (‘Act’) challenged the majority Award dated 6th August 2004 of the three member Arbitral Tribunal (‘AT’) that adjudicated the disputes between OIL and the Respondent Essar Oil Limited (‘EOL’) arising out of a contract dated 8th May 1995 entered into between the parties for drilling of offshore wells on turnkey basis offshore Saurashtra Coast, Gujarat and offshore North East Coast (‘NEC’), Orissa for the purpose of exploration of oil and/or gas.

Background Facts

2. OIL issued Notice Inviting Tender (‘NIT’) dated 19th July 1993 for setting of four Offshore Exploratory Oil/Gas Wells, three Wells at Saurashtra Offshore of the West Coast of Gujarat and one Well in NEC, Offshore of Orissa (drilled with self-propelled floater including all supporting services for the exploration of oil and/or gas on turnkey basis).

3. In response to the NIT, EOL submitted its offer on 6th December 1993 which was subsequently clarified / amended. EOL submitted its final priced bid dated 13th January 1995 offering to deploy one Turret Moored Self-Propelled Drillship “Essa