Archive · 23 Jul 2026
ONGC Takes Possession of Vedanta Oil Block
The government has taken control of an oil and gas block from Vedanta, a company that has been operating it since 1998.
Vedanta wanted to keep operating the block for another 10 years, but the government said no because of some unpaid bills and rules that weren't followed.
The court agreed with the government.
Vedanta is not happy and is trying to stop the government from taking over, but the government says it's already taken control and there's no rush.
ONGC has taken possession of the CB-OS/2 offshore oil and gas block from Vedanta.
The Delhi High Court denied Vedanta's request for a 10-year extension of its production-sharing contract.
Vedanta argued it applied for the extension in time and paid disputed dues under protest.
The government cited outstanding dues and non-compliance with policy for rejecting the extension.
The court upheld the government's decision, stating that private companies cannot hold the government to ransom regarding natural resources.
- Who
- Oil and Natural Gas Corporation (ONGC) and Vedanta Ltd.
- What
- ONGC has taken possession of the CB-OS/2 offshore oil and gas block from Vedanta.
- When
- The possession was taken on Thursday, following the Delhi High Court's decision.
- Where
- The block is located off the coast of Gujarat.
- Why
- The government denied Vedanta's request for a 10-year extension of its production-sharing contract due to outstanding dues and non-compliance with policy.
Vedanta's Perspective
Government's Perspective
Extension of Production-Sharing Contract
Vedanta's Perspective
Vedanta argues it applied for the extension in time and that the dues were disputed and later paid under protest.
Government's Perspective
The government maintains that the extension is discretionary and not a matter of right, citing outstanding dues and non-compliance with policy.
Possession of the Oil Block
Vedanta's Perspective
Vedanta sought interim relief to restrain the government from transferring the block and to protect its operations.
Government's Perspective
The government has taken possession of the block, asserting that there is no urgency in the matter.
- Block Name
- CB-OS/2
- Location
- Offshore, Gujarat coast
- Operated by Vedanta since
- 1998
- PSC Expiry Date
- June 2023
- Government Decision Date
- September 2025
- Disputed Dues
- ₹88 crore
- Court Decision
- Upheld government's decision to deny extension