Reliance Industries (RIL) rejected media reports claiming that the government has sought more than $30 billion in compensation from the company and its partner BP over alleged underproduction from offshore gas fields. In an exchange filing dated December 29, “The publication of a report such as this based on unnamed and unidentified sources is inappropriate and irresponsible,” the Mukesh Ambani-led conglomerate said in its statement.
The report had suggested that the Centre had raised the claim during arbitration proceedings related to gas production from the KG-D6 block, one of India’s largest deepwater gas assets.
Government claim pegged at $247 million
Refuting the figure cited in the report, Reliance said there is “NO claim of $30 billion against Reliance and BP.” According to the company, the government’s claim in relation to the KG-D6 block is of the order of $247 million.
Reliance added that this amount has been “appropriately and consistently disclosed” in its annual audited financial statements, in line with regulatory disclosure requirements.
Arbitration matter sub judice
The dispute relates to arbitration proceedings between the government and the RIL-BP consortium, with hearings before a three-member tribunal having concluded on November 7 after a prolonged legal battle spanning over 14 years. The tribunal’s award is expected sometime next year, and the losing party is likely to challenge the decision before the Supreme Court.
Reliance said the issues highlighted in the report are currently sub judice and will be decided by the judicial system in accordance with Indian law. The company said it has “full faith” in the process.
Reliance, BP complied with legal requirements
In its statement, Reliance maintained that it, along with BP, has at all times complied with its contractual and legal obligations under the production-sharing contract governing the KG-D6 block. The company said it takes “strong exception” to what it described as the mischaracterisation of facts in the report.
Reliance Industries is India’s largest listed company by market capitalisation, with interests spanning energy, retail, telecom and digital services.
Reliance Industries Share Price
Reliance Industries’ share price remained flat on Tuesday as per the BSE. The stock is down 1.32% in the last 1 month. However, it is up over 26.49% in 2025 so far.