Reliance calls $30 billion government claim "irresponsible," says real dispute is much smaller
Reliance Industries (RIL) has pushed back against reports that the Indian government is demanding $30 billion from them and BP over underproduction in the KG-D6 gas block.
RIL called the report "inappropriate and irresponsible," saying the actual figure is just $247 million, as shown in their official accounts.
The case is in arbitration, with a decision expected by early 2026.
What's really going on here?
RIL says the report is based on "unnamed and unidentified sources," and insists any dispute should be settled through proper legal channels under their contract—which lets them recover costs before sharing profits with the government.
This disagreement has been ongoing since at least 2012, after some costs were suddenly disallowed.
Why does the government think RIL owes more?
The government claims RIL mismanaged KG-D6 by drilling fewer wells than promised and not building enough infrastructure, which they say led to lost reserves.
But RIL points out their main wells produced three trillion cubic feet of gas before shutting down in 2020—and that other nearby blocks also struggled without similar claims being made.