Reliance Industries Ltd (RIL) on Tuesday said that the Ministry of Petroleum and Natural Gas has raised a demand of $2.81 billion from the company, BP Exploration (Alpha) Limited and NIKO (NECO) Limited over a dispute regarding gas migration from ONGC’s blocks to the KG-D6 block.
The claim related to a case dating back to 2018 when the Government of India had raised allegations against the KG-D6 Consortium for an amount of approximately $1.55 billion on account of alleged gas migration from ONGC’s blocks.
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In a regulatory filing, RIL informed, “The Company had won arbitral award issued by an eminent international arbitration panel on July 24, 2018 against the Government of India’s (GOI’s) claim on the KG-D6 Consortium for an amount of approximately US $1.55 billion on account of alleged gas migration from ONGC’s blocks. A single judge of the Hon’ble Delhi High Court, on May 09, 2023, dismissed the GOI’s appeal challenging the arbitral award. GOI had filed an appeal before the Division Bench of the Hon’ble Delhi High Court.”
However, it added, following the government’s appeal to a Division Bench, the court reversed the earlier ruling in a judgment delivered on March 3, 2025.
Reliance, meanwhile, is planning to challenge the latest ruling in the courts. “The Company is taking steps to challenge the judgment of Division Bench of Hon’ble Delhi High Court. The Company does not expect any liability on this account,” it said in the exchange filing.
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