India seeks billions from Reliance, BP over gas production dispute
The dispute, which has been before an arbitration tribunal since 2016, centers on gas extracted from two deepwater fields in the Krishna Godavari basin. Sources familiar with the matter said the tribunal heard final arguments on November 7, with a three-member panel expected to deliver its ruling by mid-2026.
Reliance and BP are also involved in a separate, long-standing legal battle with India’s state-run Oil and Natural Gas Corporation (ONGC) over alleged gas migration. ONGC claims that gas moved from its neighboring Krishna Godavari blocks into Reliance’s KG-D6 block, prompting demands for more than $1.7 billion in compensation. Although an arbitration panel initially rejected ONGC’s claims, the Delhi High Court overturned that decision, and Reliance has appealed to the Supreme Court.
The Krishna Godavari basin fields, India’s first significant deepwater gas project, were originally intended to enhance the nation’s energy independence. However, production has faced numerous challenges, including water ingress, reservoir pressure issues, and disputes over cost recovery with the government.
Reliance was awarded the project off India’s southeastern coast in 2000 under a production-sharing agreement, marking a major milestone in the country’s offshore energy development.
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