Business
Crypto
Markets
INDIA
Stocks
The Indian Ministry of Petroleum and Natural Gas has issued a $2.81 billion demand to Reliance Industries Limited (RIL) and its partners, BP Exploration (Alpha) Limited and NIKO (NECO) Limited, over a gas migration dispute involving the KG-D6 block.
Background:
In 2016, the Indian government accused the RIL-led consortium of extracting gas that had migrated from nearby blocks owned by Oil and Natural Gas Corporation (ONGC) into the KG-D6 block in the Krishna-Godavari basin. Initially, the government sought around $1.55 billion as compensation for this alleged unauthorized extraction.
Legal Proceedings:
The case went through arbitration, and in 2018, the tribunal ruled in favor of RIL and its partners. However, the Ministry challenged the ruling in the Delhi High Court. In 2023, a single-judge bench upheld the tribunal’s decision, but in 2025, a division bench overturned it, supporting the government’s claims.
Current Development:
Following the court’s decision, the government revised its demand to $2.81 billion. RIL has stated that it believes the ruling is unsustainable and plans to challenge it.
This dispute highlights the ongoing complexities in India’s oil and gas sector, impacting future operations and industry regulations.
