Page 41 - Policy Economic Report - July 2025

July 2025 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

provisions include clearer processes for lease mergers, extensions, and unitisation of reservoirs spanning
multiple blocks, aimed at improving operational flexibility.

These reforms replace the outdated Petroleum Concession Rules, 1949 and Petroleum and Natural Gas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.
They are also timed to precede OALP Round X, India’s largest-ever exploration and production bidding
round.

Alongside the draft rules, the Ministry has released a revised Model Revenue Sharing Contract that aligns
with the new framework, particularly regarding unitisation, merged lease areas, and infrastructure sharing
obligations. The revised Petroleum Lease format clarifies processes on lease relinquishment, reservoir
extension and cancellation triggers, thereby providing greater operational certainty.

As Shri Hardeep Singh Puri emphasised, “It has never been easier, faster and more profitable to explore
oil & gas in India. We look forward to constructive engagement to shape a modern, investor-friendly
regime.” Stakeholders are encouraged to submit their feedback by 17th July 2025 to png-
rules@dghindia.gov.in. The government’s efforts aim to create a transparent, efficient, and sustainable
exploration and production environment, aligned with India’s broader energy transition goals.

India Showcased Ambitious Exploration Vision & Energy Security Strategy at 9th OPEC International
Seminar

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, addressed a distinguished audience of
leaders, industry experts and professionals on ‘Oil Markets: Energy Security, Growth & Prosperity’ at the
9th OPEC International Seminar in Vienna, Austria.

The Minister outlined India’s renewed momentum to explore and drill for hydrocarbons by opening 2.5
lakh sq km under OALP Round-10. “With this major step and being close to discovering a Guyana-scale
oilfield in the Andaman Sea, India is undertaking one of the most ambitious efforts to expand hydrocarbon
exploration under the dynamic leadership of Prime Minister Shri Narendra Modi Ji. Our aim is to increase
exploration acreage to 0.5 million sq km by 2025 and 1.0 million sq km by 2030,” he noted.

This vision is supported by key policy reforms, including shifting from a Production Sharing Contract
regime to a Revenue Sharing Model under HELP, and amendments to the ORD Act 1948 to improve lease
management, safety and dispute resolution, while integrating renewable energy into hydrocarbon
projects. Additionally, reducing ‘No-Go’ areas by 99% has freed over 1 million sq km for exploration,
strengthened by national data acquisition initiatives such as the National Seismic Program, Andaman
Offshore Project, Mission Anveshan and the Extended Continental Shelf Survey.

As the world’s third-largest energy consumer with demand of around 5.4 million barrels per day, Shri Puri
described India as both a structural growth engine and a long-term stabilizer of global oil markets. “India
will contribute nearly 25% of the incremental global energy demand growth in the coming years.”

Speaking on India’s comprehensive approach to navigating the volatile global energy landscape, he
emphasized diversification of crude import sources from 27 to 40 countries, enhancing domestic

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