Government Rejects Extension of PSC for Oil & Gas Field in Cambay Basin.

State-run ONGC announced recently that the Ministry of Petroleum and Natural Gas (MoPNG) has denied the extension of the Production Sharing Contract (PSC) for the CB-OS/2 oil and gas block located offshore in the Cambay Basin, Gujarat.

The block, operated by Cairn Oil & Gas, includes the Lakshmi and Gauri fields, which collectively produce around 3,400 barrels of oil per day and 340,000 standard cubic meters per day of natural gas.

In a stock exchange filing with the BSE, ONGC said that on September 19, 2025, the ministry communicated its decision to the contractor parties - Vedanta, PNGC, and TATA Petrodyne — officially rejecting the application submitted by Cairn for a PSC extension.

The denial marks a significant development for the block’s stakeholders and could impact ongoing production and investment plans in the region. Further clarity on the government's rationale for the decision is awaited.