Reliance Industries has denied media reports claiming that the government has sought more than $30 billion in compensation from the company and its partner BP over alleged underproduction from offshore gas fields. The Mukesh Ambani-led group said the report was “factually incorrect” and based on unnamed sources.
In an exchange filing on December 29, Reliance said, “The publication of a report such as this based on unnamed and unidentified sources is inappropriate and irresponsible.” The company was responding to reports that the Centre had raised a massive compensation claim during arbitration proceedings linked to gas output from the KG-D6 block, one of India’s largest deepwater gas assets.
Refuting the figure cited in the report, Reliance said there is no claim of $30 billion against Reliance and BP. According to the company, the actual government claim related to the KG-D6 block is around $247 million.
Reliance added that this amount has been “appropriately and consistently disclosed” in its audited annual financial statements, in line with regulatory requirements.
The dispute relates to long-running arbitration proceedings between the government and the RIL-BP consortium over gas production from the KG-D6 block. Hearings before a three-member tribunal concluded on November 7, ending a legal battle that has stretched for more than 14 years.
The arbitration award is expected sometime next year, and the losing party is likely to challenge the decision before the Supreme Court. Reliance said the issues mentioned in the report are sub judice and will be decided by the judicial system in accordance with Indian law, adding that it has “full faith” in the process.
