Govt seeks first right to buy oil & gas under exigency clause

The government will hold "pre-emption rights" over all crude oil and natural gas produced in the country in case of a national emergency, the oil ministry said in its latest draft regulations on petroleum and natural gas rules.

- ARUNIMA BHARADWAJ

THE GOVERNMENT WILL hold "pre-emption rights" over all crude oil and natural gas produced in the country in case of a national emergency, the oil ministry said in its latest draft regulations on petroleum and natural gas rules.

A pre-emption right is a legal right of a party to buy or to acquire a certain product, asset, property, or resource newly coming into existence before it can be offered to any other person or entity.

The proposed regulation comes as the government seeks to ensure adequate stock and availability of oil and gas — used in various sectors such as power, CNG, PNG, fertiliser, paint etc — in case of national emergency and adversities amid increased geopolitical uncertainties, as per analysts.