Draft Petroleum & Natural Gas Rules, 2025:
The Ministry of Petroleum & Natural Gas has released the Draft Petroleum & Natural Gas Rules, 2025, aimed at modernising India’s upstream oil and gas regulatory framework.
Features of Draft Petroleum & Natural Gas Rules, 2025:
- Stabilisation Clause: Protects exploration licensees from future hikes in taxes/royalties by allowing compensation or deductions.
- Third-Party Access: Lessees must declare underutilised pipeline and facility capacity and permit fair access under government oversight.
- Integration of Renewables: Allows solar, wind, hydrogen, and geothermal projects within oilfields, ensuring synergy with decarbonisation.
- Environmental Norms: Mandatory GHG monitoring, carbon capture & storage (CCS) frameworks, and site restoration funds with 5-year post-closure monitoring.
- Data Governance: All operational data will be owned by the Government of India; external use requires prior approval and confidentiality of up to 7 years.
- Adjudication Mechanism: A dedicated Adjudicating Authority (Joint Secretary rank) to resolve disputes, enforce compliance, and penalise violations.
- Contractual Reforms: Revised Model Revenue Sharing Contract (MRSC) and Petroleum Lease formats include provisions for lease mergers, unitisation, and relinquishment.
- Replaces Outdated Laws: To supersede the Petroleum Concession Rules, 1949 and PNG Rules, 1959, and aligns with the amended Oilfields Act, 1948.
