It seeks to further amend the Oilfields (Regulation and Development) Act, 1948.

• The Act regulates the exploration and extraction of natural gas and petroleum.

Salient features of the bill

• Delinking of petroleum operations from mining operations.
• Expanded Definition of Mineral Oils: Originally including only Petroleum and Natural gas has now expanded to include any naturally occurring hydrocarbon, coal bed methane and shale gas/oil.
  • It also clarifies that mineral oils will not include coal, lignite or helium.
• Introduced concept of “petroleum lease”: It means a lease for the purpose of prospecting, exploration, development, production, making merchantable, carrying away or disposing of mineral oils.
• Rule making power of Central Government: It retains powers to regulate leases, conservation, and royalties, while adding provisions for lease mergers, facility sharing, environmental protection, and dispute resolution. 
• Decriminalising the provisions of the  Act by introducing penalties.
• Adjudication of penalties: Appeals against the decisions of the Adjudicating Authority will lie before the Appellate Tribunal specified in the Petroleum and Natural Gas Board Regulatory Board Act, 2006. 

Significance of the amendment: 

• Ensuring Energy access, security and affordability, Reduce import dependence, Attract investment in the sector and Robust enforcement mechanism.