The dispute centres on the KG-D6 block, once seen as a cornerstone of India’s energy security. Reliance, in its defence, has maintained that production declined due to geological challenges, including water and sand ingress, and not due to mismanagement. Between 2012 and 2016, the government disallowed $3.02 billion in costs incurred by the consortium and sought $247 million in additional profit petroleum. The arbitration process itself faced multiple delays, including legal challenges over the appointment of arbitrators. Reliance currently holds a 66.66 per cent stake in the KG-D6 block, while BP owns the remaining interest after Niko Resources exited the project.

Source: The Telegraph December 29, 2025 19:06 UTC