SF Prep Notes

Parliament passes Oilfields (Regulation and Development) Amendment Bill, 2024 as Lok Sabha clears it

The Lok Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024 on 12 March 2025, completing its passage through Parliament after the Rajya Sabha had passed it on 3 December 2024.

Summary

The Lok Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024 on 12 March 2025; the Rajya Sabha had passed it on 3 December 2024. The Bill separates petroleum operations from mining and introduces a single 'petroleum lease' in place of multiple licences for different activities and hydrocarbons. It enables sharing of infrastructure between operators, offers stability of lease tenure and conditions, provides for alternative dispute resolution, and supports projects such as carbon capture, utilisation and storage and green hydrogen. Penalties are raised to ₹25 lakh, plus up to ₹10 lakh per day for continuing violations, with an adjudicating authority and appeal mechanism. Petroleum Minister Hardeep Singh Puri piloted the Bill.

Key facts

Lok Sabha
Passed 12 March 2025
Rajya Sabha
Passed 3 December 2024
Single permit
Petroleum lease replaces multiple licences
Key change
Petroleum operations separated from mining
Penalty
Up to ₹25 lakh + up to ₹10 lakh/day for continuing violation
Minister
Hardeep Singh Puri

Practice MCQs 3 questions

Q1

Which Bill did the Lok Sabha pass on 12 March 2025, completing its passage through Parliament?

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Correct answer: A — Oilfields (Regulation and Development) Amendment Bill, 2024

The Lok Sabha passed the Oilfields (Regulation and Development) Amendment Bill, 2024 on 12 March 2025; the Rajya Sabha had passed it on 3 December 2024.

Q2 Advanced

What single permit does the Oilfields (Regulation and Development) Amendment Bill, 2024 introduce in place of multiple licences?

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Correct answer: B — Petroleum lease

The Bill introduces a single 'petroleum lease', replacing the need for multiple licences for different activities and hydrocarbons.

Q3 Advanced

Consider the following statements about the Oilfields (Regulation and Development) Amendment Bill, 2024: 1. It was first passed by the Lok Sabha and later by the Rajya Sabha. 2. It raises the penalty for violations to ₹25 lakh, with up to ₹10 lakh per day for continuing violations. Which of the above is/are correct?

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Correct answer: B — 2 only

Statement 1 is wrong: the Rajya Sabha passed it first, on 3 December 2024, and the Lok Sabha on 12 March 2025. Statement 2 is correct.

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