Game-Changer: New Petroleum Rules Promise Investor-Friendly Overhaul
The Ministry of Petroleum and Natural Gas has released draft rules aimed at enhancing business efficiency for exploration and production operators. Key reforms include investor-friendly clauses, encouragement for renewables, and establishment of an Adjudicating Authority, replacing outdated regulations and aligning with upcoming exploration bidding rounds.
- Country:
- India
The Ministry of Petroleum and Natural Gas announced the Draft Petroleum and Natural Gas Rules, 2025, seeking to boost the ease of doing business for exploration and production operators. The Minister invited feedback on the Draft, the revised Model Revenue Sharing Contract (MRSC), and the Petroleum Lease format by July 17, 2025.
Feedback collection will culminate during Urja Varta 2025 on July 17 in New Delhi. The draft aims to modernize India's oil and gas industry through reforms, introducing a stabilisation clause to safeguard investors from potential future legal or fiscal alterations.
Moreover, the rules encourage infrastructure sharing and promote renewable projects. They mandate the declaration of unused pipeline capacities, integrate renewable energy projects with safety stipulations, and emphasize environmental accountability. A new Adjudicating Authority is also proposed to oversee compliance and dispute resolution.
(With inputs from agencies.)
Google News