Archive · 30 Dec 2025
Reliance Denies $30 Billion Claim by Government
Reliance Industries and its partner BP are in a long-running dispute with the Indian government over gas production from the KG-D6 block.
The government has reportedly claimed that Reliance and BP should pay $30 billion for not producing enough gas, but Reliance says this claim is incorrect and the actual amount is $247 million.
The dispute started in 2016 and is about two deep-sea gas fields that were expected to reduce India's dependence on imported energy.
The companies and the government have different views on how much gas should have been produced and who is responsible for the shortfall.
The arbitration tribunal is expected to make a decision in 2026.
Reliance Industries and BP deny a $30 billion claim by the Indian government, calling media reports 'factually incorrect'.
The dispute involves gas production from the Krishna-Godavari (KG) D6 block, with the government claiming mismanagement led to loss of gas reserves.
Reliance states the actual claim is $247 million, which has been disclosed in their financial statements.
The arbitration tribunal concluded hearings in November 2025 and is expected to deliver its verdict in 2026.
The KG-D6 block was awarded to Reliance in 2000, with BP acquiring a 30% stake in 2011 for $7.2 billion.
- Who
- Reliance Industries Ltd (RIL) and BP
- What
- Dispute over gas production and compensation in the KG-D6 block
- When
- Dispute started in 2016, arbitration hearing on November 7, 2025, verdict expected in 2026
- Where
- Krishna-Godavari (KG) D6 block off the Andhra Pradesh coast, India
- Why
- Disagreements over gas production shortfalls and cost recovery
- Company
- Reliance Industries Ltd (RIL)
- Partner
- BP
- Disputed Amount
- $30 billion (claimed by media), $247 million (claimed by RIL)
- Dispute Location
- Krishna-Godavari (KG) D6 block
- Dispute Start Year
- 2016
- Arbitration Hearing Date
- November 7, 2025
- Expected Verdict Year
- 2026
- Initial Gas Reserves Estimate
- 10 trillion cubic feet (TCF)
- Revised Gas Reserves Estimate
- 3.1 TCF
- Government's Share in Profits
- 10% initially, increasing over time