Government of India Rejects Extension of ONGC's CB-OS/2 Block PSC; Directs ONGC to Take Control

The Ministry of Petroleum and Natural Gas, Government of India, has conveyed that the application for extension of Production Sharing Contract (PSC) for the CB-OS/2 Block, held by M/s Vedanta Limited, M/s Oil & Natural Gas Corporation Ltd, and M/s TATA Petrodyne Ltd, has not been accepted. The block, which consists of Lakhsmi and Gauri fields, is currently producing 3400 Barrels of oil per day and 340000 SCMD of gas. The Government has directed ONGC to take control of all data, assets, operations, and responsibilities associated with the block in the capacity of Government Nominee. This is a temporary measure to maintain continuity of petroleum operations and safeguard petroleum reserves until the block is awarded to another party.