In a significant development, Lok Sabha on Wednesday passed the Oilfields (Regulation and Development) Amendment Bill, 2024, which aims to enhance the ease of doing business in exploration & production (E&P) as well as increase the world’s third largest crude oil importer’s domestic oil and gas production.
Passed by Rajya Sabha during the winter session in December 2024, the Act delinks petroleum operations from mining, besides expanding the scope of ‘mineral oils’, introducing the concept of ‘petroleum lease’ and granting lease on stable terms.
Replying to the discussion on the bill, Minister of Petroleum & Natural Gas Hardeep Singh Puri said “It 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 condition.”
The Minister emphasised that the bill does not “alter” the rights of states, which will continue to give petroleum leases and receive royalties as before. The bill also does not alter existing level-playing field and offers no preference to either private or public sector.
“Far-reaching amendments”
Terming the development as “historic”, Minister of Petroleum & natural Gas Hardeep Singh Puri emphasised that the “far-reaching amendments” made in the existing legislation will further strengthen and propel India’s energy sector and ensure policy stability, international arbitration, extended lease periods etc.
“The present global energy scenario and the hydrocarbon landscape has dramatically changed. Hence, there was a need to amend the Act to reflect current realities, national priorities, promote Ease of Doing Business (EoDB), decriminalise provisions and align India’s Exploration and Production (E&P) framework with practices of competing geographies,” Puri noted.
Attacking the government during the debate, Congress MP and former Union Minister Manish Tewari said: “So, I would like to ask what has this Government done with regard to trying to explore shale oil and gas, which incidentally has made America almost self- sufficient insofar as their oil and gas needs are concerned? So, what you require in addition to a law is actually a roadmap to make India energy sufficient, which unfortunately is completely missing.
He suggested that the Bill should incentivise independent oil explorers. Besides, it makes minor changes. It is more of a technical Bill. What is really missing is a vision. What is really missing is a roadmap, he opined.
“Therefore, I would like to request the Government that you need to come out with a proper strategy which takes into account hydrocarbons, intermediates and renewables in a holistic manner so that you have a roadmap to energy self- sufficiency by 2050 or by 2060,” Tewari added.