Disputes worth $800 million obstructing renewal of Vedanta’s Barmer block contract

NEW DELHI: Lingering disputes worth $800 million are holding back renewal of VedantaNSE 2.50 %’s contract to operate the prolific Barmer oil block whose original 25-year term expired on May 14.

The government had agreed in October last year to extend Vedanta’s production sharing contract by ten years subject to certain conditions, including resolution of these disputes. In the absence of a resolution, the government has held back renewal of the contract but provided a three-month extension to avoid disruption of production from the Barmer field, the country’s largest on-land oil production site, said people aware of the matter.

ET’s queries emailed to the petroleum and natural gas ministry as well as Vedanta remained unanswered till press time on Friday.