Revamping Oil and Gas Sector: A Legislative Leap

The Rajya Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024, to separate petroleum operations from mining. This aims to boost investment, assure policy stability, and include international arbitration, enhancing confidence for both domestic and foreign investors. The bill also seeks to decriminalize sections of the 1948 law.

The Rajya Sabha has taken a significant step by passing the Oilfields (Regulation and Development) Amendment Bill, 2024. This amendment seeks to separate petroleum operations from mining activities, aiming to draw more investment into the oil and gas sector.

Oil Minister Hardeep Singh Puri, in his address, highlighted the high investment and long gestation period involved in the sector. He stressed the necessity for the legislation to foster confidence among both domestic operators and foreign investors.

The bill introduces a single lease and license system to ensure policy stability and improve dispute resolution mechanisms. The focus on international arbitration is a step to enhance reliability and predictability, crucial for enticing investors.

(With inputs from agencies.)