Reliance denies reports of $30 billion claim by government, calls media reports ‘factually incorrect’

Mukesh Ambani-led Reliance Industries Ltd (RIL) has rejected reports in a section of the media claiming that the Government of India has raised a $30 billion demand against the company and its partner BP, calling the reports “factually incorrect”.

In a regulatory filing to the stock exchanges, RIL said the media reports alleging that the government had sought $30 billion in compensation from Reliance and BP in an arbitration case were inaccurate and misleading.

Advertisement

“Recent reports in a section of the media claiming that the Government of India has sought $30 billion from Reliance Industries and BP are factually incorrect,” the company said. It added that the publication of such reports, “based on unnamed and unidentified sources, is inappropriate and irresponsible.”

According to the reports, the government had allegedly made the claim during submissions before a three-member arbitration tribunal on November 7, 2025, in connection with the long-running dispute over gas production from the Krishna-Godavari (KG) D6 block.

The tribunal, which concluded hearings in the 14-year-old case, is expected to deliver its verdict in 2026, after which the losing party may approach the Supreme Court.

Rejecting these claims, RIL clarified that there is no demand of $30 billion. “The claim made by the Government of India in relation to the KG-D6 block is of the order of $247 million, which has been appropriately and consistently disclosed in the company’s audited financial statements in accordance with disclosure requirements,” the company said.

Earlier media reports had stated that the dispute, which began in 2016, pertains to two deep-sea gas fields — D1 and D3 — located in the Krishna-Godavari basin off the Andhra Pradesh coast. These reports claimed that final arguments in the arbitration were heard on November 7, 2025, with a decision expected by mid-2026.

The reports further stated that the D1 and D3 fields were India’s first major deep-water gas projects and were expected to significantly reduce the country’s dependence on imported energy. However, production reportedly fell short due to technical challenges such as water ingress, reservoir pressure issues, and disagreements over cost recovery.

According to media reports, Reliance had initially estimated recoverable gas reserves of about 10 trillion cubic feet (TCF), which were later revised down to around 3.1 TCF. The government has reportedly claimed that only about 20 per cent of the originally estimated gas was eventually produced.

The KG-D6 block was awarded to Reliance in 2000 under a production-sharing contract that allowed the company to recover its costs before sharing profits with the government. Under the agreement, the government was entitled to 10 per cent of profits in the initial years, with its share increasing thereafter.

BP acquired a 30 per cent stake in the project in 2011 for $7.2 billion, becoming a partner in the venture and, consequently, part of the dispute, according to media reports.

Media reports have further claimed that the government’s alleged $30 billion claim — described as the largest ever against a private company in India — was based on the view that mismanagement by Reliance and BP led to the loss of gas reserves. The government has reportedly argued that since the gas is a national resource, the companies should compensate for the quantities not produced.