BP(US:BP) Huan Qiu Wang·2025-12-29 08:59Core Viewpoint - The Indian government is initiating arbitration against Reliance Industries and BP, claiming over $30 billion in damages due to insufficient gas extraction from offshore fields [1][2]. Group 1: Arbitration Details - The arbitration case is the largest claim made by the Indian government against companies to date, involving the D1 and D3 deepwater gas fields in the Krishna-Godavari basin [1][2]. - The arbitration tribunal has been reviewing the dispute since 2016, with final arguments completed on November 7, 2023, and a decision expected by mid-2026 [1][2]. Group 2: Claims and Counterclaims - The core accusation from the Indian government is that mismanagement by Reliance Industries and BP led to significant loss of gas reserves, with only about 20% of the estimated 100 trillion cubic feet of recoverable gas extracted [2][3]. - Both Reliance Industries and BP deny any liability for compensation to the Indian government [2][3]. Group 3: Project Background - The D1 and D3 gas fields were initially seen as crucial for enhancing India's energy independence but have faced production challenges due to issues like water ingress and reservoir pressure, along with disputes over cost recovery with the government [3].