Supreme Court Upholds Proceedings in KG Basin Gas Dispute Involving Reliance Industries

Supreme Court's Decision on KG Basin Gas Migration Case

On Wednesday, the Supreme Court declined to halt the ongoing proceedings related to the gas migration dispute in the Krishna-Godavari (KG) basin, which involves the central government and a consortium led by Reliance Industries Limited (RIL). During the hearing, RIL contended that the Delhi High Court mistakenly classified the $1.7 billion arbitration dispute concerning the KG Basin gas migration as a domestic issue, neglecting the involvement of international partners BP Exploration and Niko Resources.

In front of a bench headed by Chief Justice Surya Kant, RIL's attorney, Abhishek Manu Singhvi, emphasized that the company was not acting independently in the arbitration but was functioning as the operator under the production sharing contract (PSC) on behalf of the entire consortium, which includes RIL, BP, and Niko.

The Supreme Court's refusal to pause the proceedings comes as the consortium plans to seek conciliation or mediation from the Centre regarding the matter. The apex court was reviewing appeals from RIL and its partners, UK-based BP Exploration (Alpha) Limited and Canada’s Niko (NECO) Limited, contesting a ruling from the Delhi High Court in the KG-D6 gas migration case.