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Govt to notify Mineral Oil Rules 2025 to allow all hydrocarbon ops
Millennium Post Delhi
|New Delhi 15October2025
The Petroleum Ministry has finalised changes to Petroleum & Natural Gas Rules, 1959 that would be now notified as Mineral Oil Rules, 2025 to permit all types of hydrocarbon operations following the Oilfields (Regulation & Development) Amendment Act of 2025.
The reforms, aimed at streamlining Indias oil and gas exploration, include key change in rent and royalty whereby rent would be payable throughout the lease term in addition to the royalty, thereby substituting the prevalent ‘higher of the two’ fee mechanism.
It does away with the necessity to submit a field development plan for license term extension. All extensions would require fresh application for a petroleum lease and an interim permission to continue operations up to two years would be allowed pending government decision. The state would not withhold approval of extension unreasonably.
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