US EditionIndia claims US$30 billion from Reliance Industries, BP for underproduction from gas field: Report
India claims Reliance and BP underproduced gas from KG-D6 fields due to mismanagement, seeking $30 billion in compensation for lost reserves, tribunal ruling expected mid-2026.
- On Nov 7, the Indian government told a three-member arbitration tribunal it seeks over $30 billion from Reliance Industries Ltd and BP for underproduced gas in the KG-D6 block.
- The Indian government alleges `unduly aggressive` extraction from 18 wells instead of 31 damaged the D1 and D3 reservoirs, revising recoverable reserves from 10 trillion cubic feet to 3.1 trillion cubic feet.
- Under the production sharing contract , disputes must be settled by a mutually agreed arbitration tribunal and hearings began after court challenges were dismissed; Reliance and BP told the tribunal they owe nothing, citing approvals from the management committee overseeing the block.
- Neither Reliance Industries nor BP offered immediate comments to Reuters, a Reliance spokesperson said the arbitration is confidential, while spokespeople for federal oil, law and information ministries and the prime minister's office did not reply.
- The IEA forecast earlier this year a 60% surge in gas demand by 2030, and Reuters reported the case with sources saying any award will likely be appealed in Indian courts.
12 Articles
12 Articles
Government Seeks Over $30 Billion From Reliance, BP In KG-D6 Gas Dispute
Reliance originally held a 60 per cent stake in the KG-D6 block, with BP holding 30 per cent and Canada’s Niko Resources the remaining 10 per cent. After Niko exited, Reliance’s stake rose to 66.66 per cent, with BP holding the balance. BP had acquired its interest in 2010 for USD 7.2 billion.
India seeks $30 billion from Reliance Industries, BP in Krishna Godavari-D6 gas field dispute
The government alleged that Reliance mismanaged the fields by pursuing 'unduly aggressive' production methods, which involved extracting gas from fewer wells than the number initially planned
India Seeks $30 Billion From Reliance and BP in Long-Running Gas Dispute
India is seeking more than $30 billion from Reliance Industries and BP in arbitration over underperformance at key offshore gas fields, a case that highlights the tension between the country’s energy ambitions and investor risk.
Govt seeks $30 bn from Reliance, BP in KG-D6 gas field dispute
NEW DELHI, Dec 29: The government is seeking over USD 30 billion from Reliance Industries Ltd and BP as compensation, alleging the partners built larger-than-required facilities at the KG-D6 fields and subsequently failed to meet natural gas output targets, sources said. The government made the claim during its submissions before a three-member arbitration tribunal that on November 7 concluded hearings on the 14-year-old dispute. The tribunal …
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