Government Denies Vedanta's Request for Oil Block Extension: A Major Setback
The government has refused Vedanta group's request to extend the contract for an oil and gas block in the Cambay basin. This decision affects Vedanta Cairn Oil and Gas, which holds a 40% stake in the block CB-OS/2, now taken over by ONGC during the interim period.
- Country:
- India
In a significant blow to the Vedanta group, the government has turned down the firm's request to extend its contract for an essential oil and gas initiative in the Cambay basin, Gujarat. This development marks a second setback for Vedanta following concerns over its demerger plan raised by the petroleum ministry.
According to a letter from the Ministry of Petroleum and Natural Gas dated September 19, the application for prolonging the production sharing contract (PSC) of block CB-OS/2 will not be accepted. The refusal comes despite Vedanta Cairn Oil and Gas, along with ONGC and Invenire Energy, leading operations in this lucrative block.
State-run Oil and Natural Gas Corporation (ONGC), which owns 50% in the block, has been tasked to assume control of operations temporarily, ensuring continuous petroleum activities and securing ongoing reserves. The future leaseholder of the block remains unconfirmed as the industry looks on.
(With inputs from agencies.)
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- Vedanta
- oil block
- extension
- government
- ONGC
- PSC
- Cambay basin
- petroleum
- ministry
- Cairn
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