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Union Minister Hardeep Singh Puri announced that the upcoming amendment to the Oilfields (Regulation and Development) Bill will provide policy stability for oil and gas investors and promote ease of doing business.

 

Speaking at the Geo India 2024 conference, Puri highlighted the government's continued reforms in the exploration and production (E&P) sector to boost domestic output and reduce reliance on imports. India currently imports over 85% of its crude oil and about half of its natural gas.

 

The Oilfields Amendment Bill, introduced in August 2024 and expected to pass in the winter session, aims to ensure policy stability, allow international arbitration, and extend the lease period for producing fossil fuels.

 

 The bill also seeks to decriminalise certain provisions of the 1948 law and introduces new penalties and adjudication processes. It proposes the creation of ‘petroleum leases’ and expands the definition of mineral oils to include various forms of fossil fuels, including shale oil, coal bed methane, and tight gas.

 

These changes are intended to increase domestic production.

 

India has recoverable reserves of 651.8 million tonnes of crude oil and 1,138.6 billion cubic meters of natural gas.

 

Puri stressed the need to unlock these resources, noting that the government is reversing previous restrictions on exploration, including in no-go areas like missile testing sites.

 

The recent bid round offered a record 1.36 lakh square kilometers, 38% of which was previously classified as no-go.

 

Efforts to improve the business environment include simplifying 37 approval processes, reducing them to 18, and shifting from production-sharing contracts to a revenue-sharing model.

 

The government is also setting up a dispute resolution mechanism, settling 25 long-standing disputes.

 

Puri revealed plans to map the entire sedimentary basin by 2026-27 and provide data to investors through national seismic and EEZ surveys.

 

A data centre will also be set up at the University of Houston to support foreign investment. With rising global oil prices and increasing domestic demand, Puri emphasised the need to revitalise the E&P sector to meet growing consumption, which is expected to reach 7 million barrels per day by 2030.