Reliance Industries on Tuesday obtained a requirement discover from the Ministry of Petroleum and Pure Fuel, demanding a sum of $2.81 billion from the group and its companions together with British power main BP Plc over alleged beneficial properties comprised of pure fuel which will have migrated from state-run ONGC’s neighbouring block. The demand is equal to about Rs 24,500 crore.
“Consequent upon the abovementioned Division Bench judgment, the Ministry of Petroleum and Pure Fuel has raised a requirement of US $2.81 billion on the PSC Contractors particularly Reliance Industries Restricted, BP Exploration (Alpha) Restricted and NIKO (NECO) Restricted. The letter of demand was obtained by the Firm at 11:30 a.m. on March 3, 2025,” RIL wrote in a regulatory submitting.
Reliance mentioned it’s “legally suggested that the Division Bench judgment and this provisional demand are unsustainable” and that it’s taking steps to problem the judgment of the Division Bench of the Delhi Excessive Court docket.
“The corporate doesn’t anticipate any legal responsibility on this account,” added Reliance Industries.
In line with an earlier submitting, the Delhi Excessive Court docket on February 14 overturned a world arbitration tribunal ruling that held the duo not answerable for paying any compensation for the fuel they produced and offered which had allegedly migrated from adjoining fields.
Initially, Reliance held 60 per cent curiosity in Krishna Godavari basin deep-sea block KG-D6, whereas BP had 30 per cent and the remaining 1- per cent was with Canada’s Niko. Later, Reliance and BP took over Niko’s curiosity within the manufacturing sharing settlement.
At the moment, Reliance and its accomplice BP maintain 66.66 per cent and 33.33 per cent respectively. respectively.
Right here’s a timeline of a few of the key occasions associated to this story:
- In 2016, the central authorities sought $1.55 billion from Reliance and its companions for the amount of fuel allegedly migrated to its block KG-D6 from adjoining fields of ONGC.
- Reliance contested the claims earlier than an arbitral tribunal.
- In 2018, the tribunal upheld that the corporate was not obliged to pay any compensation.
- The Centre then filed an attraction and in 2023.
- A single-judge bench of the Delhi Excessive Court docket upheld the arbitration award, dismissing the federal government’s attraction.
- In February, a division bench of the Delhi Excessive Court docket put aside that single-judge order, ruling in opposition to Reliance and its companions.
With inputs from companies
