The Oilfields (Regulation and Development) Amendment Bill, 2024 was passed by Lok Sabha on Wednesday, marking a significant development that aims to boost ease of doing business in the exploration & production (E&P) sector and increase India’s domestic oil and gas production.
Originally passed by Rajya Sabha during the winter session in December 2024, the Act brings about key changes such as separating petroleum operations from mining, expanding the definition of ‘mineral oils’, introducing the concept of ‘petroleum lease’, and providing leases on stable terms.
Addressing the discussions on the bill, Minister of Petroleum & Natural Gas Hardeep Singh Puri highlighted that the goal is to address the concerns of global oil companies looking to invest in India by offering stability in operations in terms of lease tenure and conditions. He clarified that the bill does not impact the rights of states, which will continue to grant petroleum leases and receive royalties as before. Furthermore, it maintains a level playing field without favoring either the private or public sector.
Puri described the amendments as “historic” and emphasized that they will strengthen India’s energy sector, ensuring policy stability, international arbitration, extended lease periods, and more. He stressed the need to align India’s E&P framework with global practices and national priorities.
During the debate, Congress MP Manish Tewari raised concerns about the government’s strategy for energy self-sufficiency, suggesting a roadmap that includes incentivizing independent oil explorers and a holistic approach that integrates hydrocarbons, intermediates, and renewables.
In conclusion, Tewari urged the government to develop a comprehensive strategy for achieving energy self-sufficiency by 2050 or 2060. The bill, he noted, makes technical changes but lacks a clear vision and roadmap for energy independence.
Overall, the passage of the Oilfields (Regulation and Development) Amendment Bill, 2024 is expected to bring about positive changes in India’s energy landscape, promoting growth and stability in the sector.
