Reliance Industries said on Monday that it is not facing a $30 billion compensation claim from the Indian government, directly rejecting reports that tied the company and BP to a high-stakes arbitration dispute. The statement followed a Reuters report that described a potential claim related to offshore gas production shortfalls.
The company said the report contained factual errors and stressed that no such demand exists against Reliance or its energy partner. The response came shortly after Reuters reported that Indian authorities were pursuing more than $30 billion in arbitration over gas volumes the government says the companies failed to produce.
Reliance says dispute remains under judicial review
Reliance Industries Ltd said the issues referenced in the report remain before India’s courts. The company said the judicial system will decide the matter under domestic law. It did not confirm the existence of a formal arbitration claim at the value cited.
The Reuters report linked the alleged claim to offshore gas blocks operated by Reliance in partnership with BP Plc. According to the report, the government argues that production levels fell short of contractual obligations, which caused financial losses.
Reliance rejected that account. The company said no authority has presented a $30 billion claim. It also declined to comment on whether discussions or narrower proceedings remain ongoing.
Energy disputes in India often involve complex production-sharing contracts. They also raise jurisdictional questions between arbitration forums and domestic courts. These cases frequently draw scrutiny from investors because of their potential financial impact.
For now, Reliance’s statement seeks to contain market speculation and clarify its legal exposure. Any shift in the dispute’s status will likely depend on court rulings or formal disclosures by the parties involved.
