Reliance, BP May End Gas Pricing Dispute with Indian Government

Reliance Industries (RIL) and joint venture partner BP may end their dispute with Indian government on gas pricing, Economic Times reported Thursday.

The decision is being contemplated given the fact that government's policy changes announced in March requires them to drop the case if they want to accept the higher gas prices being offered. 

Indian government announced a much liberalised natural gas exploration policy earlier this year. Among the various measures that the nation’s cabinet approved to boost oil and gas production, is that of marketing and pricing freedom for new gas production from deepwater, ultra deepwater and high pressure-high temperature areas. While the maximum price available to domestic natural gas is $3.06 per unit, difficult fields can avail of $6.61 per unit

RIL, BP and their partner Canada’s Niko Resources had in May 2014 filed an arbitration seeking implementation of higher gas prices for the flagging KG-D6 block.