The Supreme Court agreed to consider Reliance Industries Limited’s fresh request for conciliation in the Krishna-Godavari Basin gas migration dispute with the Central government, observing that an amicable settlement would be welcomed and the appeal could be disposed of if both sides successfully resolve the matter.
The Supreme Court agreed to consider a fresh request made by Reliance Industries Limited for an amicable settlement of its long-running Krishna-Godavari (KG) Basin gas migration dispute with the Central government through conciliation.
A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul M Pancholi took note of submissions made by senior advocate Kapil Sibal, appearing on behalf of Reliance Industries.
During the hearing, Sibal informed the Court that the parties had initiated efforts toward conciliation and requested that the matter be deferred to allow discussions for an out-of-court resolution. Attorney General R Venkataramani, appearing for the Union government, responded that the Centre was open to exploring a bilateral dispute resolution mechanism and was not opposed to conciliation proceedings.
Taking note of the submissions, the Bench adjourned the matter to the third week of July. The Court also encouraged the parties to attempt a settlement, observing:
The CJI said,
“We will be most happy if the dispute is resolved through conciliation. If you come out with a settlement, we will dispose of the appeal,”
The proceedings relate to the high-profile KG Basin gas migration dispute involving Reliance Industries and its foreign partners BP Exploration (Alpha) Limited and Niko Resources. The companies have challenged a February 14, 2025 judgment of the Delhi High Court, which had set aside an arbitral award passed in their favour.
The dispute concerns allegations by the Central government that Reliance and its partners extracted or “migrated” natural gas from adjoining deposits in the Krishna-Godavari Basin that they were allegedly not authorised to exploit under their production-sharing contract. The government had claimed that the companies unlawfully benefited from gas reserves extending beyond their allocated block.
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Earlier, an arbitral tribunal had ruled in favour of Reliance Industries and its partners, rejecting the government’s financial claims. A single-judge Bench of the Delhi High Court had subsequently upheld the arbitral award. However, in February 2025, a Division Bench of the High Court overturned that ruling, reviving the dispute and prompting the companies to approach the Supreme Court.
On May 20, the Supreme Court had initially declined a request by Reliance Industries to pause the proceedings while mediation or conciliation efforts were explored. However, during Monday’s hearing, the Centre indicated its willingness to consider a negotiated resolution, leading the Court to defer further proceedings.
The KG Basin dispute has remained one of India’s most closely watched energy-sector litigations for over a decade due to its financial implications and its impact on the country’s oil and gas regulatory framework. The matter also raises broader questions concerning production-sharing contracts, resource allocation, and the legal framework governing offshore energy exploration in India.
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