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Govt notifies New Petroleum and Natural Gas Rules, 2025
Millennium Post Delhi
|New Delhi 13December2025
The government has notified the new Petroleum and Natural Gas Rules, 2025, bringing into force a modern regulatory framework aimed at attracting investment and improving ease of doing business in the oil and gas sector.
The rules, issued under the recently approved Oilfields (Regulation and Development) Amendment Act, 2025, replace the earlier system of multiple licences with a single petroleum lease covering exploration, development and production of all hydrocarbons, including shale, according to a gazette notification.
‘The new framework provides lease tenures of up to 30 years, extendable for the full economic life of a field, with terms protected from adverse changes. Criminal penalties for violations have been removed and replaced with higher financial penalties of Rs 25 lakh, plus Rs 10 lakh per day for continuing breaches. The rules also allow lessees to share infrastructure to improve operational efficiency.
Environmental provisions have mandated time-bound plans for zero gas flaring and reduced greenhouse emissions.
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