**Policy Summary: Modernization of Oil and Gas Exploration Regulatory Framework in India**
This document summarizes the Indian government's recent reforms to modernize the regulatory framework governing upstream oil and gas exploration and production, as outlined in response to Lok Sabha Unstarred Question No. 4681, answered on August 21, 2025. The core of these reforms is the Oilfield Regulation and Development Amendment Act, 2025, which was notified on March 28, 2025, and became effective on April 15, 2025.
**Key Features of the Oilfield Regulation and Development Amendment Act, 2025:**
* **Delinking:** Separates petroleum operations from mining operations.
* **Broadening:** Expands the definition of "mineral oils."
* **Petroleum Lease:** Introduces the concept of petroleum lease.
* **Stable Terms:** Grants leases on stable terms.
* **Strengthening:** Reinforces petroleum operations through specific rules governing lease/license grants, extensions/renewals, infrastructure and facility sharing, production sharing, and safety.
* **Dispute Resolution:** Establishes efficient dispute resolution mechanisms.
* **Decriminalization:** Decriminalizes provisions within the Act.
* **Penalties and Adjudication:** Introduces penalties, adjudication by an adjudicating authority, and an appeal process.
* **Energy Transition:** Facilitates energy transition by enabling the development of comprehensive energy projects, including wind and solar energy integration within oilfields.
**Exploration and Discoveries:**
Over the past three years, operators have submitted 34 Notices of Discovery (NoD) to the Directorate General of Hydrocarbons. The breakdown of hydrocarbon discoveries is as follows:
* **2022-23:** 6 Gas, 4 Oil, 2 Oil Gas (Total: 12)
* **2023-24:** 5 Gas, 5 Oil, 2 Oil Gas (Total: 12)
* **2024-25:** 5 Gas, 3 Oil, 2 Oil Gas (Total: 10)
* **Grand Total:** 16 Gas, 12 Oil, 6 Oil Gas (Total: 34)
Of these, 21 discoveries are onshore, and 13 are offshore.
Key Entities Referenced
Oilfield Regulation and Development Amendment Act, 2025: A law that modernizes the regulatory framework governing upstream oil and gas exploration and production.
PETROLEUM AND NATURAL GAS: The ministry responsible for oil and gas exploration and production.
SHRI SURESH GOPI: Minister of State in the Ministry of Petroleum and Natural Gas.
Directorate General of Hydrocarbon: An organization to which operators submit Notices of Discovery (NoD).
LOK SABHA: The lower house of the Parliament of India.
DR. K SUDHAKAR: Member of Parliament who asked the question regarding modernisation of framework governing oil and gas exploration.
SMT. KAMALJEET SEHRAWAT: Member of Parliament who asked the question regarding modernisation of framework governing oil and gas exploration.
India: The country where the oil and gas exploration and production activities are taking place.
LOK SABHA
UNSTARRED QUESTION NO. 4681
TO BE ANSWERED ON 21st August, 2025
MODERNISATION OF FRAMEWORK GOVERNING OIL AND GAS
EXPLORATION
4681. DR. K SUDHAKAR:
SMT. KAMALJEET SEHRAWAT:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government has undertaken any recent reforms to modernise the
regulatory framework governing upstream oil and gas exploration and production in the
country;
(b) if so, the details and the key features thereof particularly in relation to improving
investor confidence, infrastructure sharing and operational flexibility;
(c) whether the said reforms also include measures to facilitate integration of renewable
and low-carbon energy projects within petroleum lease areas and if so, the details thereof;
(d) the steps being taken by the Government to ensure environmental safeguards, data
governance and dispute resolution under the new framework; and
(e) the details of gas exploration undertaken along with the oil wells discovered during the
recent years?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (d): The Oilfield (Regulation and Development) Amendment Act, 2025 was notified on
28th March 2025 and was made effective from 15th April, 2025. The Salient Features of the
Oilfield (Regulation and Development) Amendment Act, 2025 which inter-alia include
easing out difficulties and boost investors’ confidence, are as under:
(i) delinking of petroleum operations from mining operations;
(ii) broadening of the scope of the expression “mineral oils”;
(iii) Introducing the concept of “petroleum lease”;
(iv) granting lease on stable terms;
(v) strengthening petroleum operations through rules framed for governing various
functional aspects, such as, grants of leases or licences, their extension or renewal,
sharing of production and processing facilities including infrastructure and safety at
oilfields;(vi) providing for efficacious dispute resolution;
(vii) decriminalising the provisions of the Act.
(viii) introduction of penalties, adjudication by an adjudicating authority and appeal as
against the order of adjudicating authority;
(ix) creating an environment for facilitating energy transition by enabling
development of comprehensive energy projects for harnessing wind and solar energy
along with mineral oil at oilfields.
(e): 34 Notices of Discovery (NoD) have been submitted by operators to the Directorate
General of Hydrocarbon during the last three years. The details are as under:
Type of Hydrocarbon discoveries during the last 3 Years
Year Gas Oil Oil & Gas Grand Total
2022-23 6 4 2 12
2023-24 5 5 2 12
2024-25 5 3 2 10
Grand Total 16 12 6 34
21 of these discoveries are onland and 13 of these discoveries are offshore.
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