Mukesh Ambani’s Reliance BREAKS silence on report on USD 30 billion compensation: ‘Claim made by…’

Mukesh Ambani-led Reliance Industries on Monday issued a statement denying the Indian government’s $30 billion claims, calling them “factually incorrect” and “inappropriate”. The company disclosed that the government’s original claim for the KG-D6 block was $247 million, and that amount was consistently disclosed in its audited annual financial statements.

Reliance reacts to report on $30 billion compensation claim

“It is inappropriate and irresponsible to publish such a report based on anonymous and unidentified sources.” “The contents of the report titled ‘India demands $30 billion from Reliance Industries for inadequate production from BP gas field’, sources say, are factually incorrect. Publishing such a report based on anonymous and unidentified sources is inappropriate and irresponsible,” RIL said in a statement to stock exchanges.

“There is NO claim of $30 Billion against Reliance and BP. It was stated that the claim made by the Government of India in respect of Block KG D6 is to the tune of $247 Million and this claim has been appropriately and consistently disclosed in the Company’s annual audited financial statements in accordance with disclosure requirements. The Company also added that the matters mentioned in the report are “entirely sub-judicial and will be determined by the judicial system of the country in accordance with the laws of the land”. Reliance has full faith.

“Reliance Industries Limited, together with its partner BP, has always complied with its contractual and legal obligations and takes strong exception to any mischaracterization of facts in the report,” he added.

What is the case about?

The case revolves around a dispute between Reliance Industries Ltd (RIL) and the government of India regarding the KG-D6 gas block in the Krishna Godavari basin. The dispute, which has been ongoing since 2016, involves allegations of mismanagement of the reservoir and failure to drill planned wells. RIL argues that production shortfalls are caused by geological complexities and not negligence. The arbitration court is expected to deliver its decision by mid-2026, which could be challenged in Indian courts.

The hearing on the dispute has been ongoing since 2016 before a court focused on gas production from two deepwater fields (D1 and D3) in the D6 block of the Krishna Godavari basin, people with knowledge of the matter told Reuters. They added that the last discussions took place on November 7. The three-member court will likely issue its decision in mid-2026, two people with knowledge of the hearing schedule said. Others said the decision could be challenged in Indian courts.