Supreme Court names mediator in Reliance's KG basin gas dispute with government

what happened

India's Supreme Court has picked former judge Ranjana Prakash Desai as the only mediator, after Reliance Industries and its partners, UK-based BP Exploration (Alpha) and Canada-based Niko (NECO), failed to resolve a long-running dispute with the central government over gas migration in the Krishna-Godavari basin. The claim is worth $1.73 billion.

According to Moody's, a bench led by Chief Justice Surya Kant referred the case to mediation, while Attorney General R Venkataramani said the sides had been unable to reach a "viable solution." The court allowed Desai to bring in up to two domain experts, as proposed by the parties. All sides pledged full cooperation with the mediator.

why it matters

For investors, this is a prolonged legal uncertainty surrounding Reliance's gas production in the KG basin. A negotiated settlement could close the matter, while a failed mediation would send it back to the courts with no set timeline. The referral itself does not set any payment amounts or deadlines.

market impact

Reliance: the prolonged gas dispute keeps legal uncertainty over KG basin output in place

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