• UGI USER
  • Aug 06, 2024
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PARLIAMENT INTRODUCES BILL FOR OIL SECTOR STABILITY

Why in the news?

The Oilfields (Regulation and Development) Amendment Bill, 2024, introduced in Parliament, aims to boost investor confidence by ensuring policy stability, providing arbitration options, and extending lease periods.

source:gyanmedia

About Introduction of Oilfields Amendment Bill:

  • The Oilfields (Regulation and Development) Amendment Bill, 2024, was introduced in Parliament to enhance policy stability and attract investment.
  • It ensures stable lease terms throughout the lease period and allows for international arbitration in disputes.

Key Provisions:

  • Introduces dispute resolution mechanisms both in India and internationally.
  • Permits longer lease periods and combines exploration licences with mining leases for greater certainty.
  • Proposes joint development of fields and sharing of infrastructure among lessees.

Additional Developments:

  • The Bill aims to streamline regulatory processes, decriminalise breaches, and replace “mining leases” with “petroleum leases” for faster clearances.
About Oilfields (Regulation and Development) Amendment Bill, 2024:

Policy Stability

  • Terms of petroleum leases remain unchanged during the lease period.
  • Aims:to assure investors of consistent financial returns.

Dispute Resolution Mechanism

  • Introduces arbitration options for dispute resolution, both domestically and internationally.
  • Responds to demands from foreign investors.

Longer Lease Periods & Regulatory Efficiencies

  • Allows merging of exploration licences and mining leases for extended lease durations.
  • “Unitisation” enables joint development of connected oilfields.
  • Renames “mining leases” to “petroleum leases” to streamline regulatory processes.
  • Replaces criminal penalties for breaches with financial penalties for a more business-friendly environment.