Early Times Report
NEW DELHI, July 9: "As part of our focus to accelerate oil & gas exploration under the leadership of Prime Minister Shri Narendra Modi Ji, we are bringing in a series of pathbreaking policy reforms to promote exploration and production. These reforms, including the Draft Petroleum & Natural Gas Rules, 2025, will significantly enhance the ease of doing business for our E&P operators," said Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas. The Minister urged all stakeholders-industry leaders, experts, and citizens-to share their feedback on the Draft Petroleum & Natural Gas Rules, the revised Model Revenue Sharing Contract (MRSC) and the updated Petroleum Lease format by 17th July 2025 at [email protected]. The consultation process will culminate at Urja Varta 2025 scheduled at Bharat Mandapam, New Delhi on 17th July.
The Draft Petroleum & Natural Gas Rules, 2025, aim to modernise India's upstream oil and gas framework with several major reforms. Key among them is the introduction of an investor-friendly stabilisation clause, designed to protect lessees from adverse impacts of future legal or fiscal changes, such as increases in taxes, royalties or other levies, by allowing compensation or deductions. To reduce infrastructure duplication and encourage smaller players, the draft mandates that lessees declare underutilised capacity in pipelines and other facilities, and provide third-party access on fair terms, subject to government oversight.
For the first time, the draft rules permit operators to undertake integrated renewable and low-carbon projects-including solar, wind, hydrogen, and geothermal energy-within oilfield blocks, provided they meet safety standards and do not interfere with petroleum production. Strengthening environmental stewardship, the draft introduces detailed requirements for monitoring and reporting greenhouse gas emissions, establishes a regulatory framework for carbon capture and storage (CCS), and mandates site restoration funds with post-closure monitoring for a minimum of five years.
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