Reliance Industries Ltd (RIL) has said it will appeal before the Supreme Court against the order of the Delhi High Court.

A division bench of the Delhi High Court had overturned an international arbitration tribunal’s ruling that stopped RIL and its partner BP Plc from paying any compensation for the gas they produced and sold, which had allegedly migrated from adjoining fields.

RIL had won an award issued by an international arbitration panel on July 24, 2018 against the Government of India’s claim on the KG-D6 consortium for an amount of around $1.55 billion. This was on account of alleged gas migration from ONGC’s blocks.

A single judge of the Delhi High Court, had on May 9, 2023, dismissed the government’s appeal challenging the arbitral award. Subsequently, the Centre had filed an appeal before the division bench of the Delhi High Court.

The division bench overturned the judgment of the single judge. “After analysing the judgment, the company will file an appeal before the Supreme Court of India,’’ RIL said in a regulatory filing.

The KG-DWN-98/3, or KG-D6, was awarded to a consortium of RIL and Niko Resources of Canada in the first bid round under New Exploration Licensing Policy (NELP) in 2000. A decade later, BP bought a 30 per cent stake in the block.

In the same round, block KG-DWN-98/2 (KG-D5) was awarded to Cairn Energy India Ltd. This block was later acquired by state-owned Oil and Natural Gas Corporation (ONGC) in two phases. An adjacent Godavari block was awarded to ONGC on nomination basis in 1997. Reliance started output from KG-D6 in 2009 while ONGC started output in January 2024.