Reliance Industries on Monday, December 29, denied reports claiming that the Indian government has made a $30 billion compensation demand against the company and its partner BP, calling the report “factually incorrect and irresponsible”.
In a regulatory filing, the Mukesh Ambani-led conglomerate refuted a media report which alleged that the government was seeking over $30 billion in damages from Reliance and BP for alleged underproduction of gas from offshore fields.
The report had suggested that the claim was made during submissions by the government before a three-member arbitration tribunal, which concluded hearings on November 7 in a dispute dating back 14 years. The tribunal is expected to deliver its award sometime next year, after which the losing party may approach the Supreme Court, according to sources cited by news agency PTI.
Rejecting the allegations, Reliance Industries stated, “There is NO claim of $30 billion against Reliance and BP.” The company said the contents of the report titled “India claims $30 billion from Reliance Industries, BP for underproduction from gas field, sources say” were incorrect and based on unnamed sources.
Reliance clarified that the government’s claim relating to the KG-D6 block is of the order of $247 million, and has been appropriately and consistently disclosed in its audited financial statements over the years.
“The publication of a report such as this based on unnamed and unidentified sources is inappropriate and irresponsible,” the company said, adding that it has always complied with its contractual and legal obligations in partnership with BP.
The company further noted that the matter is sub judice and will be decided in accordance with Indian law by the judicial system.
Reliance Industries Limited (RIL), India’s largest company by market capitalisation, operates across sectors including energy, retail, telecom and digital services. Shares of the company closed 0.8 percent lower at Rs 1,546 on the National Stock Exchange on Monday.
