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Informist, Tuesday, Dec. 30, 2025

 

--Reliance Ind: No $30-bln claim against co, BP for gas field underproduction 

 

MUMBAI – Reliance Industries Ltd. said reports that the Indian government had claimed $30 billion from the company and British energy company BP for underproduction from a gas field are factually incorrect. Reliance Industries clarified that there is no claim of $30 billion against the company and BP. The claim made by the government is in relation to KG D6 Block and is of the order of $247 million which has been appropriately disclosed, it said in an exchange filing Monday. 

 

"Reliance Industries, together with its partner BP has at all times complied with its contractual and legal obligations and take strong exception to mischaracterisation of facts in the report," Reliance Industries said. This clarfication follows media reports that said the government is seeking over $30 billion in compensation alleging that the companies built larger-than-required facilities at the KG-D6 fields and subsequently failed to meet natural gas output targets. 

 

A tribunal has been hearing the dispute in India since 2016 over gas produced from two deepwater fields, D1 and D3, in the D6 block of the Krishna Godavari basin, Reuters reported Monday, citing seven people aware of the proceedings. Final arguments took place on Nov. 7, they said. The three-member tribunal is expected to deliver its verdict in mid-2026, the report said.

 

In a separate report, Press Trust of India said the tribunal was expected to give its award sometime next year and the party that loses will most likely challenge it before the Supreme Court. Sources said the government in the arbitration proceedings sought monetary value of the natural gas that wasn't produced as well as a compensation for excess amount spent on installations, fuel marketing, and interest, PTI reported. 
 

For the quarter ended September, Reliance Industries reported a consolidated net profit of INR 181.65 billion on a revenue of INR 2.59 trillion. Monday, the stock closed nearly 1% lower at INR 1,545.60 on the National Stock Exchange.  End

 

Reported by Arya S. Biju

Edited by Vandana Hingorani

 

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