The Delhi High Court upheld the Indian government's decision to deny Vedanta Ltd a 10-year extension for its offshore oil and gas block in Gujarat. The court dismissed Vedanta's challenge against the Ministry of Petroleum and Natural Gas's move to transfer the CB-OS/2 block in the Cambay Basin to state-run Oil and Natural Gas Corporation Ltd (ONGC), according to livemint.com.
Justice Purushaindra Singh Kaurav ruled against Vedanta's petition on Wednesday, supporting the Centre's rejection of the production sharing contract (PSC) extension request. The CB-OS/2 block, which includes the Lakshmi and Gauri fields, produces about 3,400 barrels of oil and 340,000 standard cubic metres of gas daily. The decision effectively transfers control of this offshore asset from Vedanta to ONGC.
This ruling reinforces the government's approach to managing strategic energy assets by prioritizing state-run enterprises. The transfer of the CB-OS/2 block to ONGC aligns with broader efforts to consolidate national control over key oil and gas resources. The block's daily output contributes significantly to regional energy supplies, making the contract's reassignment a notable event in India's energy sector.
The Delhi High Court's judgment was delivered on July 22, 2026, marking a decisive moment in the legal dispute over the CB-OS/2 block. The ruling confirms ONGC's acquisition of the offshore block, which is expected to impact production operations and contractual arrangements in the Cambay Basin.