Archive · 30 Dec 2025
India Seeks $30 Billion from Reliance, BP Over Gas Shortfall
India is in a big fight with two companies, Reliance Industries and BP, over gas from fields in the ocean.
India says the companies didn't produce enough gas and wants $30 billion.
The companies say they didn't do anything wrong and that the problem was due to unexpected geological issues.
A special group is deciding who is right, and they will tell everyone their answer in 2026.
The gas fields were supposed to help India have more of its own energy, but they didn't work as well as hoped.
The companies and the government have been arguing about this for a long time, and the government has disallowed some of the costs the companies spent, which the companies say is unfair.
India is seeking $30 billion from Reliance Industries and BP for alleged underproduction of gas from the D1 and D3 fields in the D6 block.
The arbitration case has been ongoing since 2016, with final arguments held in November 2025 and a verdict expected in mid-2026.
The D1 and D3 fields were initially estimated to have 10.3 trillion cubic feet of recoverable gas, but this was revised down to 3.1 trillion cubic feet.
India alleges that mismanagement by Reliance and BP led to the loss of most reserves, while the companies dispute any wrongdoing, attributing it to geological factors.
The gas block was awarded to Reliance in 2000 under a production sharing contract, with BP acquiring a 30% stake in 2011 for $7.2 billion.
- Who
- India, Reliance Industries, BP
- What
- Arbitration case over gas production shortfall and cost recovery
- When
- Arbitration started in 2016, final arguments in November 2025, verdict expected in mid-2026
- Where
- D6 block of the Krishna Godavari basin, Bay of Bengal, off Andhra Pradesh, India
- Why
- India claims mismanagement led to loss of most reserves in D1 and D3 fields, while Reliance and BP dispute this, attributing it to geological factors
Government of India
Reliance Industries and BP
Cause of Underproduction
Government of India
The government alleges that Reliance mismanaged the fields by using fewer wells than planned and aggressive production methods, leading to reservoir damage and loss of reserves.
Reliance Industries and BP
Reliance and BP argue that the underproduction was due to unforeseen geological factors and that they followed all approved plans and rules.
Cost Recovery
Government of India
The government disallowed $3.02 billion of costs incurred by Reliance and its partners, claiming they missed production targets.
Reliance Industries and BP
Reliance and BP maintain that the production sharing contract (PSC) allows full cost recovery before profit sharing and that the government's disallowance is retroactive and against the PSC terms.
- Companies Involved
- Reliance Industries, BP
- Disputed Fields
- D1 and D3 in the D6 block of the Krishna Godavari basin
- Claim Amount
- $30 billion
- Initial Estimated Reserves
- 10.3 trillion cubic feet
- Revised Estimated Reserves
- 3.1 trillion cubic feet
- Production Ceased
- February 2020
- Arbitration Start Year
- 2016
- Expected Verdict Year
- 2026
- Initial Investment Plan
- $2.47 billion
- Revised Investment Plan
- $8.18 billion
- Wells Drilled
- 22 (18 in production)
- Planned Wells
- 31
- Additional Profit Claim
- $247 million
Sources
India claims $30 billion from Reliance Industries, BP for underproduction from gas field, sources say
India seeks $30 billion from Reliance, BP over D6 gas production shortfall
KG Basin dispute – Why Reliance hopes a 2026 resolution may finally settle $247 mn dispute
Govt demands over $30 billion in compensation from Reliance Industries, BP: Report
India seeks $30 billion from Reliance Industries, BP in Krishna Godavari-D6 gas field dispute
KG-D6 additional profit dispute: RIL hopeful of early resolution
"Factually incorrect, irresponsible": Reliance refutes reports of $30 bn claim by Indian govt
Govt Seeks $30 Bn From Reliance Industries Ltd and BP as Compensation
KG-D6 dispute: Reliance Industries refutes reports of govt seeking $30 billion
Reliance Industries denies $30 billion claim against the company and BP: ‘Inappropriate, irresponsible’
Reliance ‘rejects’ $30 billion Krishna Godavari-D6 dispute claim, says govt demand is $247 million
Reliance Industries Denies $30 Billion Claim, Calls Reports 'Factually Incorrect'
Government Fires $30 Billion Claim In KG-D6 Arbitration, Reliance & BP Push Back Against Underproduction Allegations
