Delhi High Court Dismisses Vedanta's Cambay Block Extension

The Delhi High Court has dismissed Vedanta's petitions challenging the Centre's denial of an extension for Vedanta's production sharing contract on the Cambay Basin offshore OS/2 block, clearing the government to transfer the asset to ONGC. The court upheld the 2017 Pre-NELP policy, ruling that extensions are not automatic and the government may consider an applicant's conduct and eligibility before granting an extension. It reinforced the government's role as trustee of natural resources and its prerogative to reallocate mature blocks when extensions are refused. The decision means Vedanta would cede control of the CB-OS/2 block to ONGC, shifting operations to the state-run company. The rulings—following earlier orders that partially restrained ONGC from taking over—now solidify the government's position and address the fate of Vedanta's offshore portfolio, including potential implications for its Cairn Oil and Gas segment. Overall, the case underscores the government's expanded discretion over legacy PSC blocks and the ongoing reshaping of India's offshore oil assets.