On 09 July, 2025, the Ministry of Petroleum and Natural Gas released the Draft Petroleum & Natural Gas Rules, 2025, introducing transformative reforms aimed at enhancing investor confidence, streamlining and  modernising exploration and production (E&P) operations in India’s upstream oil and gas sector. 

A notable provision is the inclusion of a stabilisation clause protecting lessees from adverse policy changes. Operators must disclose underutilised infrastructure and permit regulated third-party access. For the first time, integration of solar, wind, hydrogen, and geothermal projects in oilfields is allowed. Environmental safeguards include mandatory greenhouse gas (GHG) reporting, carbon capture and storage (CCS) protocols, and post-closure site monitoring. Data generated remains government property, with strict confidentiality norms. A new Adjudicating Authority will oversee compliance, lease processes, and dispute resolution. 

Stakeholders can submit feedback on the draft rules, the revised Model Revenue Sharing Contract (MRSC), and the updated Petroleum Lease format via email to png-rules@dghindia.gov.in by July 17. The consultation process will conclude at Urja Varta 2025 in New Delhi. 

The new draft rules are set to replace the outdated Petroleum Concession Rules of 1949 and the Petroleum and Natural Gas Rules of 1959. They come in the wake of recent amendments to the Oilfields (Regulation and Development) Act, 1948, and are strategically aligned with the upcoming OALP Round X—India’s largest exploration and production bidding round to date.