Sign In
Learn bits
Polity & Governance
Mahesh

03/12/24 09:51 AM IST

Oilfields Bill

In News
  • The Rajya Sabha had listed the Oilfields (Regulation and Development) Amendment Bill, 2024 for passage.
Features of the bill
  • This Bill aims to ensure policy stability for oil and gas producers and allow international arbitration.
  • The Bill would enhance India’s domestic output and cut down its reliance on oil imports. 
  • This Bill expands the definition to include coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, and gas hydrate, but does not include coal, lignite and helium occurring in the petroleum process.
  • Subsequently, the Bill alters the previously used mining lease to introduce a ‘petroleum lease’ which allows companies to explore, prospect (search for oil and gas fields), produce, make merchantable, and dispose of mineral oils. Mining leases in use will remain valid. 
  • The broader definition (of mineral oils) enables the efficient exploration, development, and production of both conventional and unconventional hydrocarbon resources without any policy confusion.
  • This (separation of leases) eliminates redundant or irrelevant approvals, streamlining the regulatory framework.
  • Under the Act, the Centre was empowered to regulate the grant, terms and conditions, and time period of leases, production, storage and conservation of mineral oils and collecting royalties, fees and taxes for mineral oils.
  • This Bill expands the Centre’s powers to include framing rules for lessees to reduce emissions, sharing of oil production and processing units, merger of leases and resolving disputes on leases.
  • With India and the energy sector’s focus on green technology, this Bill also urges oil companies to use oilfields for other purposes like hydrogen production, carbon capture utilization and storage or coal gasification.
  • The Bill also decriminalises offences related to the above-mentioned petroleum activities, such as those pertaining to invalid leases and non-payment of royalties; however, it increases the monetary fine for them from Rs. 1000 to Rs 25 lakhs. 
  • By shifting from criminal penalties to administrative fines for minor infractions, companies can focus on compliance and operational improvements without the fear of severe legal consequences.
  • This will foster a more predictable environment, encourage innovation, and streamline the regulatory process.
Source- The Hindu

More Related Current Affairs View All

06 Jan

1978 ‘anti-conversion’ law of Arunachal Pradesh

'Arunachal Pradesh is home to a number of different small ethnic communities with an array of different beliefs and practices.' The law, enacted by the then Union Territory of A

Read More

03 Jan

State of Forest Report 2023

'The State of Forest Report (SFR) 2023 was released by Union Environment Minister Bhupender Yadav at the Forest Research Institute, Dehradun, on December 21, 2024.' The SFR is

Read More

31 Dec

ISRO launches SpaDeX mission for space docking

'The Indian Space Research Organisation (ISRO) successfully launched the Space Docking Experiment (SpaDeX) mission recently.' The PSLV C60 rocket carrying two small satellites,

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps