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Reliance Industries refuted media reports claiming a $30 billion Indian government demand over KG-D6 gas field underproduction. The company clarified the actual dispute is only $247 million, disclosed in financial statements, with resolution expected soon via arbitration. Reliance called the reports factually incorrect and irresponsible
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Reliance Industries Limited swiftly refuted media reports alleging a $30 billion claim by the Indian government over underproduction at the KG-D6 gas block. The company clarified that the actual dispute involves only $247 million, fully disclosed in its financial statements, with matters under judicial review.
Key Clarifications
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The contents of the report titled "India claims $30 billion from Reliance Industries, BP for underproduction from gas field, sources say" are factually incorrect.
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There is no claim of $30 billion against Reliance and BP; the government claim related to KG-D6 block stands at approximately $247 million.
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This $247 million figure has been appropriately and consistently disclosed in the company's annual audited financial statements per regulatory requirements.
Dispute Background
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The KG-D6 block in the Krishna Godavari basin, operated by Reliance with BP as partner, has faced long-standing arbitration since 2016 over production issues from D1 and D3 fields.
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Challenges included water ingress, reservoir pressure drops, and cost-recovery disagreements, leading to lower-than-expected output despite initial reserve estimates of up to 10 trillion cubic feet.
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Reliance emphasized full compliance with contractual obligations and expressed faith in India's judicial system to resolve the sub-judice matter, expected by early 2026.
Market Implications
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Reliance labeled the exaggerated reporting as inappropriate and irresponsible, based on unnamed sources.
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The clarification aims to prevent misinformation impacting investor sentiment amid ongoing energy sector scrutiny.
Sources: The Economic Times, CNBC-TV18, The Tribune, Business Today, Reuters
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