The ministry of petroleum and natural gas has escalated its financial claim against Reliance Industries Limited (RIL) and its consortium partners – BP Exploration (Alpha) Limited and NIKO (NECO) Limited to $2.81 billion. The demand stems from an ongoing gas dispute over the alleged migration from Oil and Natural Gas Corporation’s (ONGC) fields to the KG-D6 block. The long-standing legal battle resurfaced after a Division Bench of the Delhi High Court overturned a previous ruling in Reliance’s favour.
Legal Dispute Intensifies
The conflict began in 2018. The Government of India (GOI) initially sought $1.55 billion in compensation from the KG-D6 Consortium. The gas dispute went through several judicial proceedings, culminating in a May 2023 ruling by a single-judge bench of the Delhi High Court that dismissed the GOI’s claim. On 3 March 2025, a Division Bench reversed this decision. This prompted the Ministry to reassess and raise its financial demand to $2.81 billion.
Reliance Plans to Challenge the Order
In response, Reliance confirmed receiving the ministry’s demand and announced its intention to challenge the order through legal means. The company and its partners deny wrongdoing, arguing that gas migration is natural, not intentional.
Industry-Wide Implications
The case outcome could impact India’s oil and gas sector. It may influence future regulatory disputes and contractual obligations for shared reservoirs. Industry experts are closely monitoring developments. The ruling may set a precedent for future conflicts, reports timesnownews.com.
