Indian Government Seeks $2.81 Billion from Reliance and BP Over Gas Extraction Claims
Synopsis
The Indian government is pursuing a claim of $2.81 billion against Reliance and BP, accusing them of unlawfully extracting gas from ONGC's fields in the KG basin. This high-stakes legal battle is currently under review by the Supreme Court.
Key Takeaways
The Indian government has claimed $2.81 billion from Reliance and BP.
Allegations involve gas siphoning from ONGC fields.
The case is currently under review by the Supreme Court .
Reliance argues the gas was naturally migratory .
Historical claims date back to activities between 2004 and 2014 .
New Delhi, March 16 (NationPress) The Indian government has asserted a claim of $2.81 billion against Reliance Industries Limited and UK oil major BP for purportedly extracting gas from the fields of ONGC in the eastern offshore KG basin, as reported to Parliament on Monday.
Minister of State for Petroleum and Natural Gas, Suresh Gopi, stated in a written response to a question in the Rajya Sabha, "The government has filed a claim of $2.81 billion against Reliance Industries Limited and BP. This case is currently under judicial review before the Supreme Court of India."
The minister's statement was in response to an inquiry from Rajya Sabha member Deepak Prakash, who questioned: "Is it true that the government has claimed over $2.00 billion from private entities for alleged gas theft from ONGC’s blocks located off the eastern coast?"
The MP further requested "detailed information regarding the companies involved and the current status of any payments received from these firms."
As of March, the Indian government has sought around $2.81 billion (approximately Rs 25,983 crore) from Reliance Industries Limited and its partner BP, following a ruling from the Delhi High Court in February 2025, which annulled a 2018 arbitration decision that had previously absolved Reliance of responsibility for the alleged migration of gas from ONGC fields in the KG basin.
The Ministry of Petroleum and Natural Gas has claimed that between 2004 and 2013-14, Reliance's KG-D6 block extracted gas from adjacent ONGC blocks, resulting in an "unjust enrichment" estimated at over $1.55 billion (excluding interest).
A division bench of the Delhi High Court ruled in favor of the government on February 14, 2025, overturning an earlier ruling that favored Reliance, describing the demand as "unsustainable."
Reliance contends that the gas was naturally "migratory" and asserts that they bear no liability for its extraction. The company has contested the Delhi High Court's ruling in the Supreme Court.
Point of View
It will be pivotal in shaping future corporate governance within the sector.
NationPress
5 Aug 2026
Frequently Asked Questions
What is the amount claimed by the Indian government?
The Indian government has claimed $2.81 billion from Reliance Industries Limited and BP.
What is the basis for the claim?
The claim is based on allegations of gas siphoning from ONGC's fields in the KG basin.
What is the current legal status of the claim?
The matter is currently sub judice before the Supreme Court of India.
Who is the Minister of State for Petroleum and Natural Gas?
The current Minister of State for Petroleum and Natural Gas is Suresh Gopi.
What was the Delhi High Court's ruling in this case?
The Delhi High Court ruled in favor of the government, overturning a previous arbitration award that favored Reliance.
