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 and Gas Limited is facing an enforcement petition filed by Oil and Natural Gas Corporation Limited (ONGC) in the Hon'ble Delhi High Court regarding an arbitral award of approximately USD 37 million. The company disclosed this in a regulatory filing on July 21, 2026. The petition seeks the enforcement of an award dated July 31, 2023, passed in arbitration proceedings between ONGC and Vedanta Limited, with the amount applicable to Vedanta Oil and Gas and its subsidiaries.

The Hon'ble Delhi High Court issued a notice to the company to file its reply during a hearing held on July 20, 2026. The company stated that no interim adverse order has been passed against it. The next date of hearing is scheduled for September 11, 2026. Vedanta Oil and Gas clarified that the financial implications of the award, amounting to approximately USD 37 million, have already been provided for in the books of account.

Separately, the company reported receiving a demand letter from the Directorate General of Hydrocarbons (DGH) seeking liquidated damages of approximately USD 35 million plus interest. This claim relates to four blocks awarded under the Open Acreage Licensing Policy (OALP) rounds where the DGH did not grant further extensions. The company believes it has valid grounds and is pursuing legal remedies, including a request to the DGH to refer the dispute to the Committee for External Eminent Experts (CEEE).

Vedanta Oil and Gas is evaluating the enforcement petition and intends to pursue appropriate legal remedies. The financial impact of the DGH claim, if any, will be assessed and accounted for based on the outcome of those proceedings. The intimation was signed by Shivangi Dhanuka, Company Secretary and Compliance Officer.