New Delhi, Dec 11 Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Thursday that in a landmark move, the Petroleum and Natural Gas Rules, 2025, have been amended to offer ease of business and operations.
In a post on social media platform X, the Union Minister said that India continues to strengthen the infrastructure for domestic exploration and production of hydrocarbons "as we move ahead towards achieving energy security under the dynamic leadership of Prime Minister Narendra Modi".
"With broader spectrum of rights under one petroleum lease, the lessees will have the right to carry out all types of mineral oil operations under one petroleum lease. In addition, they may undertake decarbonisation and comprehensive energy projects at oilfields," the Minister told.
According to amended rules, application for grant of petroleum lease will be decided within 180 days and long-term leases of up to 30 years may be granted and may be extended up to economic life of the field allowing lessee to make planned investment decision.
The Union Minister also informed that "Lessees shall make an annual declaration to the Union government of the installed, utilised and excess capacity of the infrastructure facilities owned by it. Permits lessees to jointly develop or share infrastructure facilities by mutual agreement".
As per amended rules, seat of arbitration of lease and contractual disputes where all lessees or Contractors are companies incorporated in India is New Delhi. Where any member is a foreign company as defined in the Companies Act, a neutral seat of arbitration may be opted.
"Lease formats have been introduced for uniformity and ease of administration. Rules mandate submission of a reduction plan comprising time-bound reduction targets and milestones to achieve zero gas flaring and reduction of greenhouse gas emissions," the Minister said in the X post.
Rules require NOCs to promptly notify all existing and new discoveries, submit field development plans within prescribed time limits, obtain Central government's approval for development areas, and regularly report development and production activities.
Also, "penalties have been enhanced to Rs 25 lakh and in case of continuation of contravention to Rs 10 lakh per day," Union Minister Puri said.
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