The Union government has introduced the Petroleum and Natural Gas Rules, 2025, aimed at simplifying India’s oil and gas sector and attracting investment.

Issued under the Oilfields (Regulation and Development) Amendment Act, 2025, the rules replace multiple licences with a single petroleum lease covering exploration, development, and production of all hydrocarbons, including unconventional resources. Leases can be granted for up to 30 years and extended for the full economic life of a field, with safeguards against adverse regulatory changes. Criminal penalties for violations have been removed, replaced by fines up to Rs 25 lakh and Rs 10 lakh per day for ongoing non-compliance.

The rules encourage joint infrastructure development and mandate time-bound plans to achieve zero routine gas flaring and reduce greenhouse gas emissions. “Applications for petroleum leases must now be decided within 180 days,” ensuring faster approvals. An expedited dispute resolution mechanism has been introduced, with the Oil Industry Safety Directorate overseeing offshore safety, audits, and operational standards.