Reliance Industries Limited (RIL) is facing a $2.81 billion demand from the Ministry of Petroleum and Natural Gas, following the Delhi High Court’s Division Bench ruling that reversed a previous arbitration award in its favor.
The demand, received by RIL, BP Exploration (Alpha) Limited, and NIKO (NECO) Limited on March 3, 2025, pertains to an earlier dispute over alleged gas migration from ONGC’s blocks to the KG-D6 Consortium. Initially, an international arbitration panel had ruled in favor of RIL in July 2018, awarding $1.55 billion. The Delhi High Court’s single judge upheld this in May 2023, but the recent Division Bench ruling overturned that decision.
RIL, however, remains firm in its stance, stating that the Division Bench judgment and the demand are legally unsustainable. The company has announced plans to challenge the ruling and does not expect any liability on this account.
With legal proceedings set to continue, investors are closely watching how this development impacts RIL’s financials and ongoing energy sector operations.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
