Reliance, Partners Win Arbitration Against India

Reliance Industries and its partners BP and Canada’s Niko Resources have won an international arbitration in their favour in a case pertaining to gas migration dispute with the Indian government, Reliance said July 31.

“An international arbitration panel has issued an award in favour of Reliance, BP & Niko (consortium) rejecting completely the claims of the government of India against the consortium in respect of migrated gas, by a majority of 2 to 1,” Reliance said. The Indian government had imposed a $1.55bn penalty on Reliance and its partners alleging they exploited gas reserves belonging to state-owned ONGC in the course of their own drilling activities in the offshore KG Basin.

“All the contentions of the consortium have been upheld by the majority with a finding that the consortium was entitled to produce all gas from its contract area and all claims made by the government of India have been rejected. The consortium is not liable to pay any amount to the government of India,” Reliance added.

The tribunal also awarded costs of $8.3mn to be paid by the Indian government to the consortium.