NEW DELHI: Reliance Industries Ltd (RIL) has revealed that India’s Petroleum and Natural Gas Ministry has raised a $2.81 billion demand against the company and its partners, BP Exploration and Niko, following an adverse ruling in the KG D6 gas dispute.
On February 14, a division bench of the Delhi High Court ruled against Reliance and its consortium in a long-standing dispute over gas extraction from the deepwater field in the Krishna Godavari basin.
Despite the setback, Reliance remains firm in its stance, asserting that the judgment and the ministry’s demand are unsustainable. The company, which has received legal advice supporting its position, is preparing to challenge the ruling and does not anticipate any financial liability arising from the case.
The dispute traces back to 2016 when the government alleged that gas had migrated from state-run ONGC’s adjacent blocks into Reliance’s KG D6 field. It demanded a deposit of $1.55 billion, which Reliance and its partners contested.
In 2018, an arbitral tribunal ruled in favour of Reliance, rejecting the government’s claim. However, the government challenged the decision, and in May 2023, a single-judge bench of the Delhi High Court upheld the arbitration ruling, dismissing the government’s appeal.
The case took a turn in February 2025 when a division bench overturned the single-judge order, ruling against Reliance and its partners. The company has since confirmed that it will escalate the matter to the Supreme Court, continuing its legal battle over one of India’s most contentious energy disputes.
