Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, announced significant amendments to the Petroleum and Natural Gas Rules, 2025, aimed at accelerating domestic exploration and production (E&P) and reinforcing India’s energy security initiatives. The changes were highlighted in a post on X, where the Minister emphasized efforts to strengthen the country’s exploration and production ecosystem.
Key Amendments to Petroleum Rules
One of the most notable modifications allows companies to obtain broader rights under a single petroleum lease, enabling them to carry out all types of mineral oil operations without seeking multiple permissions. The updated rules also allow lessees to undertake decarbonisation projects and other integrated energy initiatives within their oilfields, facilitating more comprehensive energy management.
Other important provisions include:
- Mandatory Decision Timeline: Lease applications must be processed and decisions communicated within 180 days.
- Lease Duration: Long-term leases of up to 30 years can now be granted, with the possibility of extensions based on field economics and performance.
- Infrastructure Reporting: Lessees are required to submit annual reports on their infrastructure capacities, and the rules encourage collaborative development of infrastructure among operators.
- Arbitration and Dispute Resolution: New regulations establish New Delhi as the seat of arbitration for domestic disputes while allowing neutral arbitration for matters involving foreign companies.
- Enhanced Penalties: Violations now attract penalties of up to ₹25 lakh, escalating to ₹10 lakh per day for continuing infractions related to infrastructure or operational compliance.
Objective of the Amendments
These reforms are designed to streamline operations in the petroleum sector, reduce administrative hurdles, and incentivize greater investment in exploration and production. By granting broader operational rights under a single lease and facilitating integrated energy projects, the amendments aim to create a more investor-friendly and efficient regulatory framework.
The government’s focus on clarity in lease approvals, robust infrastructure reporting, and structured dispute resolution mechanisms is expected to improve transparency and operational efficiency across the sector.
Summary:
The government has amended the Petroleum and Natural Gas Rules, 2025, to support domestic exploration and production. Key changes include broader rights under a single lease, authorization for decarbonization projects, mandatory 180-day lease decisions, long-term lease options up to 30 years, annual infrastructure reporting, arbitration frameworks, and increased penalties for violations. The reforms aim to simplify operations, promote investment, and strengthen India’s
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