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It seeks to amend the Oilfields (Regulation and Development) Act, 1948.
- Originally, oilfields, mines and minerals were regulated together through the Mines and Minerals (Regulation and Development) Act, 1948.
- In 1957, the Mines and Minerals (Development and Regulation) Act was enacted for development and regulation of mines and minerals.
Key features of the bill
- Broadening the scope of the expression mineral oils.
- Mineral oil means any naturally occurring hydrocarbon, including crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, etc.
- Introducing the 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.
- Delinking of petroleum operations from mining operations.
- Providing for efficacious dispute resolution and decriminalizing the provisions of the Act.
Significance of the Amendment
- Ensuring Energy access, security and affordability.
- Reduce import dependence by Increasing the domestic production of oil and gas.
- Attract investment in the sector to infuse capital and technology that promotes ease of doing business, prospects for exploration, etc.
- Energy Transition through use of next-generation cleaner fuels.
- Robust enforcement mechanism for ensuring compliance.
