Union Petroleum and Natural Gas Minister Hardeep Singh Puri has said 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, the Union Minister said that India continues to strengthen the infrastructure for domestic exploration and production of hydrocarbons as the country moves ahead towards achieving energy security under the leadership of Prime Minister Narendra Modi.

 

 

With a 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.

 

 

According to amended rules, applications for the grant of petroleum leases will be decided within 180 days, and long-term leases of up to 30 years may be granted and may be extended up to the economic life of the field.

 

 

As per amended rules, the 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.

 

 

Rules require NOCs to promptly notify all existing and new discoveries, submit field development plans within prescribed time limits, obtain the Central government’s approval for development areas, and regularly report development and production activities.

 

 

Penalties have been enhanced to 25 lakh Rupees and, in case of continuation of contravention, to 10 lakh Rupees per day.