The Lok Sabha, in its recent sitting during theBudget session, passed the Oil Sector (Regulation and Development) (Amendment) Bill,2024. The bill aims to reform the legal framework to meet current needs andmarket demand and make the sector more attractive to investors with the aim offurther increasing the exploration and production of oil and natural gas. TheBill will play an important role in ensuring energy availability,accessibility, affordable price, and security for citizens.

The historic amendment bill, one of the biggestlegal reforms, was introduced in the Parliament by Petroleum and Natural GasMinister, Shri Hardeep Singh Puri. He said the current regime needs to be restructuredto promote ease of doing business as well as cooperation between the governmentand contractors, focusing primarily on licensing, regulatory control, androyalty collection.

The bill is intended to maintain a cooperativefederal spirit and does not affect the rights of states in any way. States willcontinue to receive petroleum leases, necessary statutory approvals, androyalties as before.

With the passage of the Bill, its provisions willenhance “ease of doing business” and make the country an attractive destinationfor oil and natural gas production, the Minister stated. Shri Puri stressedthat the bill will play an important role in unlocking the hydrocarbonpotential of our resource-rich nation.