Archive · 2 Jan 2026
Reliance and Government Dispute Over KG-D6 Gas Output
Reliance-BP and the Indian Government are in a dispute over the gas output from the KG-D6 block.
The government has claimed $247 million from Reliance-BP because it disallowed some of the investments made in developing the infrastructure for drilling oil and gas.
The production-sharing agreement between them allows for sharing the profit oil after deducting these investments.
The government says it should get more profit petroleum because of the disallowed investments.
This dispute is expected to be resolved by mid-2026.
The Indian Government has claimed $247 million from Reliance-BP over disallowed investments in the KG-D6 block.
The dispute arises from the production-sharing agreement, which allows for sharing profit oil after deducting project development investments.
Reliance-BP has disclosed the government's claim in its reports.
The government contends it is liable to receive more profit petroleum due to the disallowed investments.
The dispute is expected to be resolved by mid-2026.
- Who
- Reliance-BP and the Indian Government
- What
- Dispute over gas output and profit sharing from the KG-D6 block
- When
- Dispute ongoing, resolution expected by mid-2026
- Where
- KG-D6 block, India
- Why
- Government disallowed certain investments, leading to a claim for additional profit petroleum
- Parties Involved
- Reliance-BP and the Indian Government
- Dispute Amount
- $247 million
- Dispute Origin
- Disallowed investments in project infrastructure
- Resolution Timeline
- Expected by mid-2026
- Contract Type
- Production-sharing agreement