Draft Petroleum & Natural Gas Rules, 2025

On 9th July 2025, the Ministry of Petroleum and Natural Gas released the Draft Petroleum & Natural Gas Rules, 2025, introducing major reforms to attract investment and promote sustainable energy practices.

Key Points

Bold Policy Shift: Aims to boost investor confidence, ease operations, and align with global decarbonisation goals.
Stabilisation Clause: Protects lessees from future legal/fiscal risks, with options for compensation or deductions.
Third-Party Access: Lessees must declare underused pipeline/facility capacity and allow regulated third-party usage.
Green Integration: Allows solar, wind, hydrogen, and geothermal projects within oilfield blocks, ensuring no disruption to petroleum operations.
Sustainability Measures: Introduces GHG monitoring rules, CCS framework, site restoration fund, and 5-year post-closure monitoring.
Data Ownership: All data and physical samples to remain government property; export/sharing needs prior approval.
Confidentiality Period: Data protected under a 7-year confidentiality rule.
Adjudicating Authority: Proposed authority (not below Joint Secretary) to resolve disputes and ensure compliance.
Operational Flexibility: New provisions for lease mergers, extensions and unitisation across blocks.
Regulatory Overhaul: Rules to replace Petroleum Concession Rules, 1949, and P&NG Rules, 1959, aligning with amended Oilfields Act, 1948.