<h1>Ministry of Petroleum and Natural Gas grants No Objection for Vedanta Oil and Gas Ltd's Demerger</h1>
Vedanta Oil and Gas Limited, formerly known as Malco Energy Limited, has received approval from the Ministry of Petroleum and Natural Gas (MoPNG), Government of India, regarding the assignment of participating interests and operatorship following a Scheme of Arrangement. This decision relates to oil and gas blocks transferred during the demerger process involving Vedanta Limited, Vedanta Aluminium Metal Limited and Talwandi Sabo Power Limited, and Vedanta Iron and Steel Limited.
The Scheme of Arrangement became effective on May 1, 2026. MoPNG's "no-objection" was conveyed in relation to this transfer, which involved the demerger of the Oil and Gas undertaking from M/s Vedanta Limited into Malco Energy Limited (which is proposed to be renamed Vedanta Oil and Gas Limited).
The approval issued by MoPNG included specific conditions relating to pending liabilities. It was stipulated that any outstanding liabilities of M/s Vedanta Limited towards exploration and production contracts (PSCs, RSCs, or CBM contracts) signed with the Government of India must be taken over by the demerged entity, namely M/s Malco Energy Limited / M/s Vedanta Oil and Gas Limited.
The communication also addressed Block CB-OS/2, noting that M/s Vedanta Limited was the successor-in-interest to Cairn India Limited concerning the said contract. The document noted that a judgment from the Hon'ble High Court of Delhi dated 22.07.2026 upheld MoPNG's earlier decision (dated 19.09.2025) regarding an application for extension of the PSC.
The communication, issued by the Directorate General of Hydrocarbons, provided several operational directives to the demerged entity:
| Requirement | Status/Instruction |
|---|---|
| Contract Amendments | Applications for necessary amendments to all affected contracts must be submitted to DGH along with draft documents at the earliest. |
| Financial Security | Fresh Bank Guarantee(s) must be furnished on behalf of the demerged entity, ensuring that existing Bank Guarantees remain valid until replacement is accepted by DGH. |
| Government Dues | All outstanding Government dues and demands under the contracts must be discharged according to contract terms. |
The Directorate General of Hydrocarbons clarified that this "No Objection" does not confer any right or interest in respect of the said Block, nor does it constitute recognition of the subsistence, revival, or extension of the PSC. The communication was issued without prejudice to the rights and position of the Government of India.
VOGL Stock Price Movement
On Friday, Vedanta Oil and Gas Limited shares rallied significantly to close at ₹34.23, gaining 4.94% from the previous close. During the trading session, the stock traded hands with a volume of 42,802,896 shares, outpacing its intraday low of ₹32.12.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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