BP is pursuing at least $3.7 billion in damages from Venture Global following an arbitration ruling issued on October 8 2025 that found Venture Global breached its contract by failing to declare commercial operations and act as a reasonable operator. The pursuit is detailed in Venture Global’s annual report released this week.
The arbitration centered on liquefied natural gas cargoes under a long‑term contract that was to begin in late 2022. Venture Global failed to deliver the cargoes, prompting BP to seek compensation. The award range is $3.7 billion to over $6 billion, plus interest, costs, and attorneys’ fees, according to the annual report.
Venture Global has responded that the damages are "unserious and not supported by evidence or controlling law," and CEO Mike Sabel said the award is expected in 2027. BP has not publicly disclosed the exact amount it is seeking, but the arbitration ruling confirms the breach.
The dispute highlights the contractual risks in LNG export contracts. BP’s claim underscores the importance of timely commercial operations and adherence to contractual obligations. The potential award could significantly impact Venture Global’s financial position, given its reported 2025 revenue growth and projected EBITDA decline in 2026.
The arbitration outcome also contrasts with a similar case involving Shell, where the tribunal ruled in favor of Shell. The divergent decisions illustrate the complexity of interpreting LNG contracts and may influence future litigation strategies for other LNG exporters.
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