One of the biggest corporate legal battles in India’s history just hit a high-voltage moment. As of Tuesday, December 30, 2025, Reliance Industries (RIL) is firing back at reports claiming the Indian government is seeking a jaw-dropping $30 billion in damages over the KG-D6 gas field saga.1
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The thing is, RIL isn’t just denying it—they’re calling the reports “irresponsible” and “factually incorrect.”2 Or nothing. Let’s be real, a $30 billion claim would be the largest the Indian government has ever pursued against a private firm. Those too.
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The “$30 Billion” vs. “$247 Million” Standoff
Here’s the deal: media reports (citing “unnamed sources”) claimed that during final arbitration hearings on November 7, the government asked for compensation for unproduced gas, excess infrastructure spending, and interest.3 But RIL says that’s nonsense.
| The Media’s Claim | Reliance’s Response |
| Claim: Govt wants $30 billion for missing gas targets. | Response: “There is NO claim of $30 billion.” |
| Claim: Sources say infrastructure was “oversized.” | Response: The actual demand is $247 million (already disclosed in audits). |
| Status: New legal bombshell. | Status: Sub judice; matter rests with the tribunal. |
Field Notes: The 14-Year Drama
It’s an ongoing situation that’s been dragging on since the “D1 & D3” gas fields started failing way back in 2010.4
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The Government’s Argument: They say RIL didn’t drill enough wells (18 instead of the 31 promised) and mismanaged the reservoir, leading to permanent damage.5
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Reliance’s Defense: They blame “geological surprises” like sand and water ingress.6 Basically, the gas just wasn’t there like they thought it was.
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The “Shortfall”: Recovery peaked early and then fell off a cliff, eventually stopping entirely in 2020.7
And here’s the kicker: even though the hearings ended in November, we won’t get a verdict until mid-2026. And whoever loses? You can bet they’ll be taking this straight to the Supreme Court.
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The Stakeholder Split
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Reliance Industries: Holds a 66.66% stake.8
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BP (British Petroleum): Holds 33.33%.
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Niko Resources: Long gone (exited years ago).9
It’s an ongoing situation where the “sanctity of contracts” is being tested. If the government can retroactively “disallow” costs after a field underperforms, it changes the whole math for energy investors in India.
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End…
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