New Delhi [India], August 5 (ANI): Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday introduced the Oilfields (Regulation and Development) Amendment Bill, 2024 in Rajya Sabha.
The salient features of the amendments proposed in the said Bill, introduced in the Upper House today, are delinking petroleum operations from mining operations; broadening the scope of the expression ‘mineral oils’; introducing the concept of “petroleum lease”; and granting lease on stable terms.
The introduced Bill is also aimed at strengthening petroleum operations through rules framed for governing various functional aspects, such as, grants of leases or licenses, their extension or renewal, and sharing of production and processing facilities including infrastructure and safety at oilfields; dispute resolution; and creating an environment for facilitating energy transition by enabling the development of comprehensive energy projects for harnessing wind and solar energy along with mineral oils at oilfields.
Originally, oilfields, mines, and minerals were comprehensively regulated together through the Mines and Minerals (Regulation and Development) Act, 1948.
Subsequently, in 1957, the Mines and Minerals (Development and Regulation) Act, 1957 was enacted for the development and regulation of mines and minerals under the control of the central government.
The original Act of 1948 was also renamed as the Oilfields (Regulation and Development) Act, 1948, (the said Act) and made applicable to mineral oils only.
The said Act, which provides for a very different global energy context, requires to be amended to meet the needs and aspirations of the country for energy access, energy security, and energy affordability.
Further, the government, in the Bill said, there is an urgent and pressing need to increase domestic production of oil and gas to meet the rising demand for energy and reduce import dependence of the country.
“In order to unlock valuable mineral oil resources, it is necessary to attract investment in the sector to infuse necessary capital and technology for expediting petroleum operations in the country by creating an investor-friendly environment that promotes ease of doing business, prospects for exploration, development and production of all types of hydrocarbons, ensures stability, promotes adequate opportunities for risk mitigation, addresses energy transition issues including next-generation cleaner fuels and provides for a robust enforcement mechanism for ensuring compliance of the provisions of the said Act,” the bill read. (ANI)
