Reliance India says the oil ministry demanded $2.81 billion in gas dispute case

Reliance Industries, an Indian company, said Tuesday that the Petroleum and Natural Gas Ministry of India has demanded $2.81 billion in a dispute over gas drilling from the company and BP Exploration and Niko.

A division bench of the Delhi High Court ruled on February 14 against Reliance in a dispute over the extraction of gas from a deepwater block in India's KG-D6 block, located in the Krishna Godavari Basin in the eastern coast.

Reliance, in a filing on the exchange, said that it has received legal advice that the division bench judgement and this provisional request are not sustainable and is now taking steps to contest the judgment. It also added that they do not expect to be held liable for this case.

Reliance announced earlier that it would appeal this decision to the Supreme Court of India.

In 2016, the Indian government sent a letter to Reliance, its partners and other interested parties asking them to deposit $1.55 billion to cover alleged gas migration from state-run ONGC blocks located nearby.

Reliance challenged the claims, and in July 2018, an arbitral tribunal upheld the company’s claims.

The Indian government appealed and, in May 2023 a judge at the Delhi High Court dismissed the government's appeal.

In February 2025 a division bench in the Delhi High Court overturned the single judge's order and ruled against Reliance, its partners, and the company. (Reporting and editing by Sethuraman NR)

(source: Reuters)