State-run Oil and Natural Gas Corporation (ONGC) has taken over operations and control of the disputed Cambay offshore block from Vedanta Oil & Gas Ltd following a Delhi High Court ruling, according to regulatory filings by the two companies.
Vedanta Oil & Gas Ltd has recognised an impairment charge of about Rs 379 crore against assets and receivables linked to the block.
The takeover of the CB-OS-02 block took effect on July 22, 2026, after the High Court’s single-judge bench dismissed Vedanta’s challenge to the government’s decision not to extend the production-sharing contract, ONGC said in its quarterly filing.
The block was operated by Vedanta, which held a 40 per cent participating interest; ONGC held 50 per cent, and Invenire Petrodyne Ltd had the remaining 10 per cent. The Government, through a September 19, 2025, letter, declined to extend the contract and directed the operator to hand over the block to ONGC.
Vedanta challenged the decision before the Delhi High Court on September 22, 2025. The contract for the Cambay block expired on June 29, 2023. Vedanta and its joint venture partners had applied for an extension on June 28, 2021, under the Government’s 2017 extension policy.
Vedanta’s writ petition was dismissed on July 22, 2026, resulting in the vacation of an interim stay that had earlier directed that status quo be maintained. ONGC subsequently took over the block and applied for a petroleum lease on July 28, 2026.
The legal dispute, however, remains unresolved. Vedanta appealed against the single-judge order before a division bench of the Delhi High Court.
Hearings have concluded, and the judgment has been reserved, according to the two companies’ filings.
Vedanta said it had stopped recognising revenue and related expenses from the Cambay block from the date of the July 22 order. In view of the absence of a valid production-sharing contract and uncertainty over the recoverability of assets and receivables, it recognised an impairment charge of approximately Rs 379 crore in the first quarter of FY27.
ONGC said it accounted for its interest in the block as an unincorporated joint venture up to July 21, 2026, and has been operating it under the terms applicable to the nomination regime since taking over the following day.
The state-run explorer said decommissioning liabilities would be met from the site restoration fund maintained for the block. Other future liabilities arising from petroleum operations after the takeover would be borne by ONGC for as long as it continues to operate the block.
Both companies said the ultimate outcome of the litigation and any consequential financial impact could not be determined at present.
“The company has taken over the custody of the block and accounted for its interest in the block as an unincorporated joint venture till July 21, 2026,” ONGC said.
“The company, being a nominee of the government, is carrying out operations of the block CB-OS-02 applying the terms applicable for the nomination regime, since July 22, 2026.”
Stating that ONGC has taken over the Block, Vedanta Oil & Gas Ltd said it has filed an appeal against the said dismissal before the Division Bench of the Delhi High Court.
“The hearings have concluded on 1st October, and the matter is reserved for judgment.”
“Considering the recent judicial developments, the absence of a valid PSC and the resulting uncertainty regarding recoverability of assets and receivables relating to the block, the Group reassessed the carrying value of the related balances. Accordingly, the Group has recognised an impairment charge of approximately Rs 379 crore during Q1FY27,” Vedanta said.