India passes Oilfield Amendment Bill to encourage O&G investments #IndiaFinance

India has passed the Oilfield (Regulatory and Development) Amendment Bill, 2024, a legislative reform intended to attract investors and increase oil and gas (O&G) exploration in India.

This move follows the bill’s passage in the Rajya Sabha – the upper house of the Indian parliament – on 3 December 2024 and is a step towards fulfilling the Prime Minister’s vision of Viksit Bharat, aimed at transforming India by 2047.

The bill is a response to the evolving market conditions and the need for a legal framework that aligns with current industry requirements.

The proposed amendments, based on industry consultations, aim to provide a stable, predictable legal framework with efficient dispute resolution, balancing investor needs and national interests.

It is expected to enhance energy availability, accessibility, affordability and security for Indian citizens, the Ministry of Petroleum & Natural Gas said in a statement.

Over the past ten years, the government has implemented reforms to shift from a ‘production sharing’ to a ‘revenue sharing’ regime, deregulate crude, and offer marketing and pricing freedom for natural gas.

These reforms have resulted in more than 76% of India’s exploration acreage being awarded since 2014.

Petroleum and Natural Gas Minister Hardeep Singh Puri emphasised the need to shift from a licensing-focused regime to one that enhances ease of doing business and fosters government-contractor collaboration.

The Amendment Bill separates mining from petroleum operations and introduces a single petroleum lease permit, replacing the need for multiple licences.

It also supports comprehensive energy projects and emerging technologies such as carbon capture utilisation and storage and green hydrogen.

The bill addresses key concerns of global oil investors by ensuring operational stability through secure lease tenure and conditions.

It strengthens enforcement by raising penalties to Rs2.5m ($28,719), with up to Rs1m per day for violations, and establishes an adjudication authority with an appellate mechanism for efficient dispute resolution.

“India passes Oilfield Amendment Bill to encourage O&G investments” was originally created and published by Offshore Technology, a GlobalData owned brand.

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