On Thursday, in New Delhi, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced that the Petroleum and Natural Gas Rules 2025 have been updated to simplify business and boost operational ease.
He highlighted that India is continuing to build a stronger domestic exploration and production base “as we move ahead towards achieving energy security under the dynamic leadership of Prime Minister Narendra Modi”.
“With broader spectrum of rights under one petroleum lease, the lessees will have the right to carry out all types of mineral oil operations under one petroleum lease. In addition, they may undertake decarbonisation and comprehensive energy projects at oilfields,” he explained.
Under the revised rules, a lease application is slated to be decided within 180 days, and companies can secure long‑term leases of up to 30 years, extendable to the field’s economic life, giving lessees the flexibility to plan investments.
Additionally, the minister said that “Lessees shall make an annual declaration to the Union government of the installed, utilised and excess capacity of the infrastructure facilities owned by it. Permits lessees to jointly develop or share infrastructure facilities by mutual agreement”.
If all lessees or contractors are Indian‑incorporated companies, New Delhi will serve as the arbitration seat for lease‑related disputes; any foreign company participation allows for a neutral arbitration venue.
“Lease formats have been introduced for uniformity and ease of administration. Rules mandate submission of a reduction plan comprising time‑bound reduction targets and milestones to achieve zero gas flaring and reduction of greenhouse gas emissions,” the minister added on X.
The new rules also demand that NOCs promptly declare new and existing discoveries, submit field development plans on schedule, secure central government approval for development zones, and regularly report on production activities.
Moreover, “penalties have been enhanced to Rs 25 lakh and in case of continuation of contravention to Rs 10 lakh per day”.
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