India Seeks $30B from Reliance, BP Over Gas Shortfall
India Demands $30B from Reliance, BP in Gas Dispute
Published December 29, 2025
The Indian government is pursuing a substantial compensation claim exceeding $30 billion against Reliance Industries and BP. This legal action stems from an ongoing arbitration dispute regarding the companies’ alleged failure to extract and supply natural gas from key offshore fields.
The arbitration proceedings, which have been underway in an Indian tribunal since 2016, focus specifically on production shortfalls from the D1 and D3 deepwater fields located within the D6 block of the Krishna Godavari basin. According to recent reports, these fields were expected to yield significant gas output that the companies reportedly did not achieve as per contractual obligations.
Final oral arguments in this protracted legal battle were presented on November 7, marking a critical stage in the resolution process. The core issue revolves around the volume of gas that Indian authorities assert Reliance and BP were contractually required to produce and deliver from these vital offshore assets but ultimately did not provide.
This high-stakes case pits two prominent players in the global energy sector against each other: Reliance Industries, India’s largest private sector conglomerate with extensive operations in oil and gas exploration and production, and BP, the British multinational oil and gas corporation renowned for its worldwide energy ventures.
The outcome of this arbitration could have far-reaching implications for international energy contracts, offshore exploration commitments, and the dynamics between governments and private energy firms in resource-rich regions. Investors and industry watchers are closely monitoring developments as they may influence future investment strategies in the natural gas sector.
