Vedanta contract extension dispute: High Court issues notice, orders status quo

The Delhi High Court issued notice to the Union government and other respondents in Vedanta Ltd’s petition challenging the denial of a contract extension for the CB-OS/2 offshore block off Gujarat, and ordered status quo on the Centre’s move to hand over the block to ONGC, effectively pausing the transition.

The single-judge bench noted that issues raised could not be dismissed at the threshold and require a proper response, thereby agreeing to examine the government’s refusal and related fairness in executive action. Vedanta has operated the block since 1998 under a production sharing contract that expired in June 2023.

Key highlights

• Court action: Notice issued; status quo on ONGC takeover pending adjudication
• Block: CB-OS/2 (Suvali offshore, Gujarat); PSC entered in 1998, expired June 2023
• Government decision: Extension denial in September 2025 challenged by Vedanta
• Maintainability: Court declined to dismiss petition at threshold; will examine merits
• Implications: Operational control remains unchanged; timeline subject to court proceedings

Sources: The Economic Times; LiveLaw; Bar & Bench; ET EnergyWorld (Economic Times)