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India Claims $2.81 Billion from Reliance, BP for Alleged ONGC Gas Theft

The Indian government has made a $2.81 billion claim against Reliance Industries and BP for allegedly siphoning natural gas from ONGC's fields in the KG basin. Minister of State Suresh Gopi informed Parliament that the matter is now sub judice before the Supreme Court. The claim follows a February 2025 Delhi High Court ruling that overturned a previous arbitration award favoring Reliance. Reliance contends the gas was migratory and has challenged the High Court's decision in the Supreme Court.

Key Points: $2.81 Billion Claim on Reliance, BP for ONGC Gas: Minister

  • $2.81bn claim for alleged gas siphoning
  • Delhi HC overturned arbitration award
  • Alleged unjust enrichment from 2004-2014
  • Reliance maintains gas was migratory
2 min read

Govt has claimed $2.81 bn from Reliance, BP for allegedly siphoning ONGC gas: Minister

Govt claims $2.81bn from RIL & BP for allegedly siphoning ONGC gas in KG basin. Matter now sub judice in Supreme Court.

"The Government has made a claim of $2.81 billion from Reliance Industries Limited and BP. The matter is presently sub judice before the Supreme Court of India - Suresh Gopi"

New Delhi, March 16

The government has made a claim of $2.81 billion from Reliance Industries Limited and UK oil giant BP for allegedly siphoning out gas from ONGC's fields in India's eastern offshore KG basin, the Parliament was informed on Monday.

"The Government has made a claim of $2.81 billion from Reliance Industries Limited and BP. The matter is presently sub judice before the Supreme Court of India," Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written answer to a question in the Rajya Sabha.

The minister's reply came in answer to a question raised by Rajya Sabha member Deepak Prakash, who asked: "Whether it is a fact that the Government has claimed more than $2.00 billion from private companies for alleged gas pilferage/theft from ONGC's blocks off the eastern coast"

The MP also asked for "complete details thereof with the names of private companies involved and the latest status of payment received from these private companies so far".

As of March, the Indian government has demanded approximately $2.81 billion (around Rs 25,983 crore) from Reliance Industries Limited (RIL) and its partner BP following a February 2025 Delhi High Court ruling, which set aside a 2018 arbitration award that initially cleared RIL of liability for alleged migration of gas from ONGC fields in the KG basin.

The Ministry of Petroleum and Natural Gas has alleged that between 2004 and 2013-14, RIL's KG-D6 block drew gas from adjacent ONGC blocks, amounting to an "unjust enrichment" of over $1.55 billion (plus interest).

A division bench of the Delhi High Court on February 14, 2025, ruled in favour of the government, overturning a previous single-judge ruling that favoured RIL, calling the demand "unsustainable".

Reliance maintains that the gas was "migratory" (naturally moved across boundaries) and that they are not liable for extracting it. The company has challenged the Delhi HC judgment in the Supreme Court.

- IANS

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Reader Comments

S
Sarah B
This is a very complex technical and legal issue. The gas being 'migratory' is a valid geological point. While the principle of 'unjust enrichment' is important, the case highlights how poorly defined block boundaries and extraction rules can lead to these disputes. Hope the SC gives a clear verdict that sets a precedent.
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Vikram M
₹26,000 crores! That's an insane amount of money. If recovered, imagine what that could do for our infrastructure or healthcare. But let's be real, these legal battles go on for decades. Will we ever see this money in the treasury? I have my doubts. 🤔
P
Priya S
Good to see the government taking a firm stand. ONGC is our national asset. Private players come in for profit, but they must follow the rules. The timeline (2004-2014) is concerning – why did it take so long to address this? Systems need to be more robust to prevent such issues in the first place.
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Rohit P
Reliance and BP are huge companies. They have the best lawyers money can buy. The fact that the Delhi HC has ruled in the government's favour is significant. This isn't just about money; it's about setting a standard for how natural resources are managed. Jai Hind! 🇮🇳
D
Deepak U
While the claim seems justified, I hope the process is transparent and based solely on technical evidence. We've seen cases where such large claims become political tools. The Supreme Court must ensure a fair trial based on science and contract law, not sentiment.

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