Govt unveils more safeguards for investors in oil & gas sector

THE MINISTRY OF petroleum and natural gas has introduced an investor-friendly stabilisation clause in its draft Petroleum and Natural Gas Rules, 2025, under which holders of exploration and production rights will be protected from adverse impacts of future legal or fiscal changes such as increase in taxes, royalties or other levies, via compensation or deductions.

- ARUNIMA BHARADWAJ

Further, to reduce infrastructure duplication and encourage smaller players, the draft rules mandate that lessees declare underutilised capacity in pipelines and other facilities, and provide third-party access on fair terms, subject to government oversight. "Strengthening environmental stewardship, the draft introduces detailed requirements for monitoring and reporting greenhouse gas emissions, establishes a regulatory framework for carbon capture and storage, and mandates site restoration funds with post-closure monitoring for a minimum of five years," said the Centre.