Reliance Industries said on Tuesday (March 4, 2025) the Petroleum and Natural Gas Ministry has raised a demand of $2.81 billion from the company.
| Photo Credit: REUTERS
Reliance Industries said on Tuesday (March 4, 2025) the Petroleum and Natural Gas Ministry has raised a demand of $2.81 billion from the company, BP Exploration and Niko in a gas drilling dispute case.
On February 14, a division bench at Delhi High Court ruled against Reliance and its partners in a dispute regarding extraction of gas in a deepwater field in India’s KG D6 block in the Krishna Godavari basin.
The company has been legally advised that the division bench judgment and this provisional demand are unsustainable and is taking steps to challenge the judgment, Reliance said in an exchange filing, adding it does not expect any liability due to this case.
Reliance had earlier said that it would appeal the decision in the Supreme Court.
The government in 2016 sent a notice to Reliance and its partners, asking to deposit about $1.55 billion on account of alleged gas migration from nearby blocks of state-run ONGC .
Reliance contested the claims and an arbitral tribunal in July 2018 upheld the company’s claims.
The government filed an appeal and in May 2023, a single judge of Delhi High Court upheld the arbitration award, dismissing the government’s appeal.
In February 2025, a division bench of the Delhi High Court set aside the single judge order, ruling against Reliance and its partners.
Published – March 04, 2025 12:32 pm IST
