The rules seek to replace the outdated Petroleum Concession Rules, 1949 and Petroleum and Natural Gas Rules, 1959, and follow the recent amendment of the Oilfields (Regulation and Development) Act, 1948.
Key Provisions of the Draft
- Introduction of detailed requirements for monitoring and reporting greenhouse gas emissions, establishes a regulatory framework for carbon capture and storage (CCS), and mandates site restoration funds with post-closure monitoring for a minimum of five years.
- Undertake integrated renewable and low-carbon projects: These rules permit operators to undertake projects in solar, wind, hydrogen, and geothermal energy within oilfield blocks.
- Stabilisation clause: Designed to protect investors from adverse impacts of future legal or fiscal changes, such as increases in taxes, by allowing compensation or deductions.
- Declaration: Need to declare underutilised capacity in pipelines and other facilities to reduce infrastructure duplication and encourage smaller players.
- Creation of a dedicated Adjudicating Authority: To enforce compliance, resolve disputes, and impose penalties.
- Data Governance: All operational data and physical samples belong to the Government of India. Lessees can use this data internally, with export or external use requiring government approval.
