India seeks over $30bn from Reliance, BP in gas field arbitration

India is pursuing a compensation claim of more than $30 billion against Reliance Industries and its partner BP, alleging the companies failed to produce agreed volumes of gas from offshore fields in the Krishna Godavari basin, according to people familiar with the case.

The dispute, which has been under arbitration since 2016, concerns gas output from the D1 and D3 deepwater fields in the KG-D6 block, India’s first major deepwater gas project. A three-member tribunal heard final arguments on November 7 and is expected to deliver its verdict in mid-2026, with the possibility of appeals in Indian courts.

The government argues that mismanagement by Reliance and BP led to the loss of most of the estimated gas reserves, claiming the companies produced only a fraction of what was originally projected. The claim represents the largest compensation demand ever made by the Indian government against a corporation.

Reliance and BP have not commented on the arbitration, which is confidential, but are understood to have disputed any liability. The KG-D6 project, once seen as critical to boosting India’s energy independence, struggled with technical challenges and cost-recovery disputes, falling short of initial production expectations.