Oilfields (Regulation and Development) Amendment Bill, 2024 Introduced in Rajya Sabha

Objective of the Bill

The Bill originally provided for the regulation of oilfields, mines, and minerals under the “Mines and Minerals (Regulation and Development) Act, 1948”.

Amendment of Existing Laws

The Bill aims to update and amend existing laws for the oil and gas sector in India.

Key Points of the Bill

• Extension in the Definition of Mineral Oil: The Bill expands the definition of mineral oil to include all naturally occurring hydrocarbons. This includes crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, etc.
• Concept of Petroleum Lease: The Bill introduces a new concept of petroleum lease. This refers to leasing for the purpose of prospecting, exploration, development, production, commercialization, carrying away, or disposal of mineral oils.
• Distinction Between Petroleum Operations and Mining Operations: The Bill distinguishes petroleum operations from mining operations. This distinction will help in enforcing specific rules and regulations for the oil and gas sector.
• Dispute Settlement and Decriminalisation: The Bill provides for effective resolution of disputes and decriminalises several provisions.

Importance of the Amendment

• Energy Security: This amendment will promote energy security by increasing domestic production and reducing dependence on imports.
• Investment Attraction: The amendment will promote the use of capital and technology by attracting investments in the oil and gas sector and enhancing the Ease of Doing Business.
• Energy Transition: This amendment will ensure energy transition by promoting the use of next-generation clean fuels.
• Law Enforcement: This amendment will establish a strong mechanism for effective implementation of the law.