Parliament clears Bill to amend laws on oil & gas exploration, production

New Delhi, March 13: A Bill to amend the existing laws governing the exploration and production of oil and gas, and to delink petroleum operations from mining operations to boost investment in the sector was passed by the Parliament on Wednesday.

The Oilfields (Regulation and Development) Amendment Bill, 2024 was passed by the Lok Sabha on Wednesday.

Notably, the Bill was passed by the Rajya Sabha on December 3, 2024.

During discussion on the Bill, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri highlighted that India is the only country in the world where in the reference period of last three years, the prices of petrol and diesel have actually come down.

"We have brought down the prices of petrol and diesel because the Prime Minister reduced the central excise (duty) on two occasions," Puri asserted and took a swipe at the Opposition, saying that Congress-ruled States have increased VAT (Value Added Tax) on petrol and diesel.

Prices in neighbourhood countries are 15 to 25 per cent higher than in India. Equally, prices in Western Europe and US are much higher than in India, he said.

While moving the Bill for consideration and passage in the Lok Sabha, Puri said it does not alter the existing level-playing field for both public and private sectors.

"The oil Bill aims to resolve one of the biggest grievances of global oil companies interested in investing in India by providing stability in operation, both in terms of tenure of the lease and the condition. The Bill also does not alter the rights of the States, which will continue to give petroleum leases and receive royalties as before.

"The Bill also does not alter the existing level-playing field and offers no preference to either the private or the public sector," he said.

Among others, the Bill aims to decriminalise some of the provisions of the original Oilfields (Regulation and Development) Act, 1948, by introducing "penalties, adjudication by an adjudicating authority and appeal as against the order of adjudicating authority".

Besides, it seeks to introduce 'petroleum lease' and expands the definition of mineral oils to include crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil and gas hydrate, with a view to raising domestic output and cutting reliance on imports, he said.

- With inputs from news agencies