The Delhi High Court has dismissed a writ petition filed by Vedanta Oil & Gas Ltd regarding the government's refusal to extend the Production Sharing Contract (PSC) for the CB/OS-2 Block. The judgment, dated July 22, 2026, impacts the company's operational rights for the specified block. Vedanta Oil & Gas has since filed a Letters Patent Appeal (LPA) before the Division Bench of the Delhi High Court to challenge the order and protect its interests.

The litigation involved Vedanta Oil & Gas challenging the Union of India (Ministry of Petroleum and Natural Gas) and the Directorate General of Hydrocarbons (DGH) over the non-acceptance of its application for the PSC extension. The court's decision represents a setback for the company's efforts to retain the block through the contract extension mechanism.

Legal Proceedings and Next Steps

Following the dismissal of the writ petition, the company has initiated appellate proceedings. The Letters Patent Appeal marks the next legal step in the dispute. Vedanta Oil & Gas stated it is pursuing appropriate remedies to contest the judgment.

Financial Implications

Vedanta Oil & Gas is currently evaluating the financial and operational implications arising from the judgment. The company has not yet quantified the potential impact in its regulatory filing. The outcome of the appeal remains crucial for determining the future operational status of the CB/OS-2 Block.

Vedanta Oil & Gas Limited disclosed the terms of a $2,250,000,000 facility agreement executed by its promoter group entities, which creates an encumbrance over 56.38% of its total share capital. The filing, submitted to BSE Limited and National Stock Exchange of India Limited on July 22, 2026, details the agreement entered into on July 20, 2026, by Twin Star Holdings Ltd as the borrower and Vedanta Resources Limited, Vedanta Holdings Mauritius II Limited, and Welter Trading Limited as guarantors. The agreement imposes specific restrictions on the company, including limitations on asset disposals and investments, although no direct impact on management or control is reported.

Facility Agreement Structure

The facility agreement involves Barclays Bank PLC, Citigroup Global Markets Asia Limited, DB International (Asia) Limited, First Abu Dhabi Bank PJSC, J.P. Morgan Securities (Asia Pacific) Limited, Mashreq Bank PSC, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation Singapore Branch as arrangers. Original lenders include Barclays Bank PLC, Citibank, N.A., Hong Kong Branch, DB International (Asia) Limited, First Abu Dhabi Bank PJSC, JP Morgan Chase Bank, N.A., London Branch, Mashreq Bank PSC, Standard Chartered Bank, Standard Chartered Bank (Mauritius) Limited, and Sumitomo Mitsui Banking Corporation Singapore Branch. GLAS Agency (Hong Kong) Limited acts as the agent and security agent. As on the date of disclosure, the commitment of the original lenders is $1,545,000,000 with an increase commitment of up to $705,000,000 available. The proceeds are designated for the repayment of financial indebtedness, payment of fees, and general corporate purposes, explicitly excluding thermal coal infrastructure or remittance to India.

Encumbrance and Shareholding

The disclosure confirms that encumbrances have been created over the shares of Vedanta Oil & Gas pursuant to the facility agreement. While no pledge has been created over the equity shares as of the date of disclosure, the terms constitute an encumbrance under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The encumbrance covers 99.99% of the total promoter shareholding.

The table below details the shareholding of the promoter group entities subject to the encumbrance:

Restrictions and Conditions

The facility agreement imposes several restrictions on Vedanta Oil & Gas. No Obligor shall create or permit to subsist any security or quasi security over the shares of the company. Additionally, no member of the Vedanta Resources Limited group shall create or permit to subsist any security or quasi-security over the shares owned by them in an Obligor which owns shares in the company. If and when the company becomes a Material Subsidiary of Vedanta Resources Limited, the group is required to continue to control the company or, continue to own, directly or indirectly, at least 50.1% of the issued equity share capital.