Reliance Industries Limited (RIL) has rejected recent media reports claiming that the Government of India is seeking $30 billion in compensation from it and partner BP over underproduction from the KG‑D6 deepwater gas field in the Krishna Godavari basin. RIL described these reports as “factually incorrect, inappropriate, and irresponsible” in a statement to stock exchanges.
The company clarified that no $30 billion claim exists against it or BP. The actual claim relates to about $247 million, a figure that has been fully disclosed in audited financial statements, consistent with disclosure requirements.
The dispute traces back over a decade and concerns costs the government allegedly disallowed for recovery during development and production of the KG‑D6 block’s D1 and D3 gas fields. Under the production sharing contract, companies can recover specific costs before profit sharing with the government. Media reports had suggested that lower gas output due to operational choices, including fewer wells, prompted the government to demand large compensation.
RIL and BP maintain they complied with all contractual and legal obligations, and geological factors limited field output. They stressed that the matter is sub judice, meaning it is under active judicial review, and any resolution will follow India’s legal process, including potential appeals up to the Supreme Court.
The company criticised reports relying on unnamed sources and misrepresenting facts. RIL reiterated its confidence in transparency and compliance with legal and contractual standards, asserting that the exaggerated claim misleads the public and investors.
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