The Ministry of petroleum and Natural Gas on June 15, 2021 has issued the Draft Oilfields (Regulation and Development) Amendment Act, 2021 to further amend the Oilfields (Regulation and Development) Amendment Act, 1948.
The Proposed amendments are as followed :
• Section 4A, which specifies Prospecting of mineral oils or mineral oil resources has been Inserted, namely:
“No person shall undertake any operation in any part of India or in its territorial waters, continental shelf and exclusive economic zone of India for the purpose of prospecting, exploration, development or production, making merchantable, carrying away or disposing of mineral oils or mineral oil resources, except under a valid lease granted under this Act and the rules made thereunder.”
• Section 5(2)(d)(3), which specifies the terms and conditions of lease has been inserted, namely:
“The terms and conditions of lease shall remain stable during the period of the lease, for expeditious and efficient development of mineral oil resources, and shall not be altered to the disadvantage of the lessee during the period of the lease.”
• Section 6(2)(k) has been Inserted, namely:
“The sharing of production and processing facilities and other infrastructure, both on land and offshore, by two or more lessees for more efficient development of mineral oil resources.”
• Section 6(2)(l) has been Inserted, namely:
“The safety in mineral oil operations, including safety and protection of terminals, installations and other structures and devices.”
• Section 6(2)(m) has been Inserted, namely:
“The sound management of mineral oil resources in accordance with good international petroleum industry practices including obligations of lessees towards protection of environment during operations and while abandoning, decommissioning and undertaking site restoration activities.”
• Section 6(2)(n) has been Inserted, namely:
“The untisation of leases across States, Union territories and offshore leases where there is reservoir continuity or connectivity or for efficient exploration, development or production of mineral oil resources."
• Section 6(B)(1), which specifies the power of central Government to direct submission of data or sample, has been inserted, namely:
“The Central Government may, for public purpose, direct any party to submit any data or sample related to any mineral oil resource, mineral oils or mineral oil resource lease in such manner as it may determine.”
• Section 6(B)(2), which specifies the power of central Government to direct submission of data or sample, has been inserted, namely:
“The Central Government may, by notification in the Official Gazette, make rules for the collection, aggregation, dissemination, use or sharing of the data and samples related to the specified mineral oil resources, mineral oils and mineral oil resource leases by or with the Government or any other party nominated by the Central Government, for the purposes of economic development, academic research and public welfare."
• Section 8(A), which specifies designation for regulation of safety of mineral oil, has been Inserted, namely:
“The Central Government may, by notification, designate an authority to formulate standards, procedures and guidelines for the safety of mineral oil resource operations, conduct audits and seek compliance of safety standards and perform such other duties as may be specified in the notification."
• Section 13(A), which specifies validity of leases and licences, has been inserted, namely:
“All mining leases and licences granted before commencement of the Oilfields (Regulation and Development) Amendment Act, 2021, shall continue to be valid for their respective terms subject to the terms and conditions governing the grant of such leases and licences."
