The High Court issued the interim relief after Vedanta filed a petition against the Ministry of Petroleum and Natural Gas’ refusal to extend the company’s Production Sharing Contract (PSC) for the CB‑OS/2 offshore oil and gas block. Vedanta has been managing the block since 1998 and had requested a 10-year extension in 2021.

Court Halts Government Takeover Plans

Vedanta argued that objections raised by the government were delayed and that an abrupt transfer of operations would disrupt production and compromise safety. The company maintained that it has complied with PSC obligations for decades and that continuation is necessary for operational stability.

The government, represented in court, contended that PSC agreements are time-bound and that continuation beyond the original term is not automatic. Officials emphasized that natural resources remain state property and their management falls under government discretion.

Justice Amit Sharma ruled that status quo must be maintained, ensuring Vedanta retains operational control until the next hearing. No takeover by ONGC will occur in the meantime. The court has scheduled further proceedings for 27 February 2026.

Impact on Energy Sector and Production

The court’s decision safeguards ongoing production at the offshore block and provides the judiciary time to examine Vedanta’s claims regarding contract extension and compliance. Legal experts note this ruling may influence the handling of other aging oil and gas contracts across India.

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