Page 47 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Emerging risk-mitigation and financing instruments, including insurance-backed surety bonds,
enabled by recent policy measures

Financial institutions and lenders, including banks and insurers, shared perspectives on risk assessment
frameworks, exposure norms and institutional considerations, while emphasising the importance of risk-
sharing mechanisms and policy clarity to facilitate deeper capital participation.

In his directional remarks, Sh. Neeraj Mittal (Secretary, MoP&NG), underscored that timely and adequate
availability of capital will be a critical determinant of upstream execution, and called for sustained
engagement between policymakers, operators and financiers to strengthen financing frameworks in line
with India’s upstream ambitions.

b. Amended ORD Act, PNG Rules and Model Revenue Sharing Contract

A dedicated session was held to familiarise operators with the amended Oilfields (Regulation and
Development) Act, the revised Petroleum and Natural Gas Rules, and the updated Model Revenue Sharing
Contract (MRSC). MoPNG highlighted that the recent reforms complete a decade-long effort to establish
a stable, predictable and investor-aligned upstream regulatory framework, aimed at reducing
interpretational ambiguities and supporting long-term planning as exploration activity expands. DGH
explained how the updated MRSC operationalises changes introduced through legislative and regulatory
reforms, ensuring coherence between policy intent and contractual implementation.

The Secretary, MoPNG noted the constructive and encouraging response from industry participants, and
emphasised that the focus going forward would be on effective and consistent implementation at scale,
so that policy certainty translates into tangible outcomes.

c. New Upstream Bid Rounds – Translating Reform into Opportunity

The bid promotion event showcased the investment opportunities emerging from recent reforms and
data-driven exploration initiatives, and aimed at encouraging wider domestic and global participation in
India’s upstream sector.

The session highlighted how:

• Regulatory evolution

• Improved data availability

• Government-led exploration initiatives

• Strengthening domestic capabilities

are together reshaping India’s upstream investment landscape.

Sh. Srikant Nagulapalli (DG, Directorate General of Hydrocarbons) presented the details of forthcoming
bid rounds:

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