Oilfields (Regulation and Development) Amendment Bill

On 3rd December 2024, the Rajya Sabha approved the Oilfields (Regulation and Development) Amendment Bill, redefining petroleum operations and introducing significant changes to the sector’s regulatory framework.

Key Points

Redefining Operations: The Bill delinks petroleum operations from mining, expands the definition of “mineral oils,” and introduces the concept of “petroleum lease” to replace “mining lease.”
Provisions for Sector Growth: The legislation ensures stable lease terms, facilitates energy transition, strengthens petroleum operations, and introduces a penalty-based dispute resolution mechanism while decriminalizing earlier provisions.
State and Federal Concerns: Opposition criticized the Bill for undermining federal rights, particularly concerning the replacement of mining leases with petroleum leases.
Government Assurance: Oil Minister clarified that petroleum leases would still require state government approval and emphasized the Bill’s aim to attract investments and benefit all stakeholders.