India claims $30b from Reliance, BP

Seeks compensation over failure to produce gas from offshore fields

NEW DELHI:

India is seeking over $30 billion in compensation from Reliance Industries and BP in an arbitration case for gas it says the companies failed to produce from offshore fields, according to three people with knowledge of the matter.

A tribunal has been hearing the dispute in India since 2016 over gas produced from two deep-water fields, D1 and D3, in the D6 block of the Krishna Godavari basin, seven individuals with knowledge of the proceedings said. Final arguments took place on November 7, they said.

The three-member tribunal is expected to deliver its verdict in mid-2026, two people aware of the hearing schedule said. The verdict can be challenged in Indian courts, several people said.

Reuters is reporting the case and India's $30 billion claim for the first time.

Reliance Industries said in a statement that the contents of the Reuters report were "factually incorrect" and "there is no claim of $30 billion against Reliance and BP".

A spokesperson for London-based BP, a Reliance partner in the fields, declined to comment.

The D1 and D3 fields, India's first major deepwater gas project, were seen as key to bolstering the country's energy independence when first developed.

However, the high-profile project was plagued by production difficulties related to water ingress and reservoir pressure, as well as cost-recovery disputes with the government, and failed to live up to initial production hopes, previous public statements by Reliance and the government show.