About Oilfields Amendment Bill, 2024
The Oilfields (Regulation and Development) Amendment Bill, 2024
Context:
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The Oilfields (Regulation and Development) Amendment Bill, 2024 was introduced in the Rajya Sabha.
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It seeks to amend the Oilfields (Regulation and Development) Act, 1948, which governs the exploration and extraction of petroleum and natural gas.
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Originally, oilfields, mines, and minerals were regulated under the Mines and Minerals (Regulation and Development) Act, 1948, later split into the Mines and Minerals (Development and Regulation) Act, 1957.
Key Objectives of the Bill:
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Ensure Policy Stability – Protects petroleum leaseholders from unfavorable legal or regulatory changes.
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Enable International Arbitration – Allows resolution of disputes through international arbitration.
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Boost Investor Confidence – Creates a favorable environment to attract domestic and foreign investments.
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Facilitate Efficient Development – Encourages:
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Joint development of connected oilfields.
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Shared infrastructure for better resource utilization.
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Major Provisions of the Bill:
| Aspect | Current Provisions | Amended Provisions |
|---|---|---|
| Definition of Mineral Oils | Includes petroleum and natural gas. | Expands to include: naturally occurring hydrocarbons, coal bed methane, and shale gas/oil. Excludes coal, lignite, and helium. |
| Petroleum Lease | Uses a mining lease for exploration, prospecting, production, and disposal. | Replaces mining lease with petroleum lease, covering similar activities. Existing leases remain valid. |
| Rule-Making Powers | Regulates lease grants, terms, production methods, and royalty collection. | Adds rules for: (i) merger/combination of leases, (ii) sharing of facilities, (iii) environmental protection, (iv) dispute resolution. |
| Decriminalization of Offences | Violations were punishable by up to six months imprisonment or Rs 1,000 fine. | – Increases penalties to Rs 25 lakh. |
| Adjudication of Penalties | Adjudication by an officer of Joint Secretary rank; appeals to Appellate Tribunal under the Petroleum and Natural Gas Board Regulatory Board Act, 2006. | Appeals to the Appellate Tribunal for Electricity under the Electricity Act, 2003. |
Significance of the Bill:
✅ Ensures Energy Access & Security – Strengthens India’s oil and gas regulatory framework.
✅ Reduces Import Dependence – Promotes domestic oil and gas production.
✅ Attracts Investment – Encourages capital flow and technological advancements.
✅ Supports Energy Transition – Facilitates the shift to cleaner fuels like natural gas.
✅ Strengthens Enforcement Mechanism – Enhances penalties and dispute resolution.
Conclusion:
The Oilfields (Regulation and Development) Amendment Bill, 2024 is a landmark reform that modernizes India’s oil and gas sector. By simplifying lease structures, enhancing penalties, and encouraging investment, it aims to make India self-reliant in energy production while supporting a cleaner and more sustainable energy future.