Latest news with #Oilfields(RegulationandDevelopment)AmendmentBill
Yahoo
13-05-2025
- Business
- Yahoo
India to acquire pre-emption rights over oil and natural gas during national emergencies
The Indian Government will retain pre-emption rights over all oil and natural gas produced within the country in the event of a national emergency, according to the draft rules under the recently amended oilfields legislation, reported the Economic Times. This measure is designed to safeguard national interests and maintain public welfare during crises. The Ministry of Petroleum and Natural Gas has opened a dialogue for feedback on the draft rules following the passage of the Oilfields (Regulation and Development) Amendment Bill by parliament earlier this year. The bill updates provisions from the 1948 Act to stimulate domestic production, attract investment and assist India's energy transition objectives. According to the draft: 'In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of pre-emption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India.' Producers will be compensated at a 'fair market price prevailing at the time of pre-emption', ensuring they are not financially disadvantaged by the government's exercise of this right, the report said. However, the draft does not specify the conditions that would trigger a national emergency. Industry insiders suggest that scenarios such as military conflicts or natural disasters could activate this provision. "Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the draft rules stated. Additionally, the draft rules stipulate that oil and gas operators may be exempt from their contractual obligations under force majeure circumstances, which encompass a wide range of unforeseeable events. In a related development, India has announced significant modifications to its domestic gas allocation policy, aiming to improve the supply and affordability of natural gas. From the first quarter of 2026, allocations for compressed natural gas and piped natural gas will be planned on a two-quarter advance basis. The updated policy also includes new well gas from the nomination fields of government-owned ONGC and Oil India. "India to acquire pre-emption rights over oil and natural gas during national emergencies" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Time of India
12-05-2025
- Business
- Time of India
Govt to hold pre-emption right over oil, gas in national emergency: Draft rules
The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation. A pre-emption right (or preemptive right) is the legal right of a party - often a government or existing shareholder - to purchase or claim a product, asset, or resource before it is offered to others. The inclusion of such rights over crude oil - extracted from underground or beneath the seabed and refined into fuels like petrol and diesel - as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies. The producer of oil and natural gas will be paid a "fair market price prevailing at the time of pre-emption", the draft rules said. Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals. "In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of preemption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India," the rules stated. This right will be exercised by providing a "fair market price prevailing at the time of pre-emption to the lessee by Government of India, for the petroleum or petroleum or mineral oil products or the crude oil or natural gas taken in pre-emption." The rules however did not define what would constitute a national emergency. Industry sources said war or war-like situations - like the one that the country faced in the military standoff with Pakistan - or natural disasters could constitute a national emergency. "Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the rules said. The draft rules also provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions. Force majeure includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, pandemic and any other happening which the lessee could not reasonably prevent or control, the rules added.
&w=3840&q=100)
Business Standard
11-05-2025
- Business
- Business Standard
Govt to hold pre-emption right over oil, gas in emergency: Draft rules
The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation. A pre-emption right (or preemptive right) is the legal right of a party - often a government or existing shareholder - to purchase or claim a product, asset, or resource before it is offered to others. The inclusion of such rights over crude oil - extracted from underground or beneath the seabed and refined into fuels like petrol and diesel - as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies. The producer of oil and natural gas will be paid a "fair market price prevailing at the time of pre-emption", the draft rules said. Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals. "In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of preemption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India," the rules stated. This right will be exercised by providing a "fair market price prevailing at the time of pre-emption to the lessee by Government of India, for the petroleum or petroleum or mineral oil products or the crude oil or natural gas taken in pre-emption." The rules however did not define what would constitute a national emergency. Industry sources said war or war-like situations - like the one that the country faced in the military standoff with Pakistan - or natural disasters could constitute a national emergency. "Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the rules said. The draft rules also provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions. Force majeure includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, pandemic and any other happening which the lessee could not reasonably prevent or control, the rules added.
Time of India
11-05-2025
- Business
- Time of India
Govt to hold pre-emption right over oil, gas in national emergency: Draft rules
The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation. A pre-emption right (or preemptive right) is the legal right of a party - often a government or existing shareholder - to purchase or claim a product, asset, or resource before it is offered to others. The inclusion of such rights over crude oil - extracted from underground or beneath the seabed and refined into fuels like petrol and diesel - as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies. The producer of oil and natural gas will be paid a "fair market price prevailing at the time of pre-emption", the draft rules said. Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals. "In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of preemption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India," the rules stated. This right will be exercised by providing a "fair market price prevailing at the time of pre-emption to the lessee by Government of India, for the petroleum or petroleum or mineral oil products or the crude oil or natural gas taken in pre-emption." The rules however did not define what would constitute a national emergency. Industry sources said war or war-like situations - like the one that the country faced in the military standoff with Pakistan - or natural disasters could constitute a national emergency. "Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the rules said. The draft rules also provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions. Force majeure includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, pandemic and any other happening which the lessee could not reasonably prevent or control, the rules added.
Time of India
11-05-2025
- Business
- Time of India
Govt to hold pre-emption right over oil, gas in national emergency: Draft rules
The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation. A pre-emption right (or preemptive right) is the legal right of a party - often a government or existing shareholder - to purchase or claim a product, asset, or resource before it is offered to others. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations The inclusion of such rights over crude oil - extracted from underground or beneath the seabed and refined into fuels like petrol and diesel - as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies. The producer of oil and natural gas will be paid a "fair market price prevailing at the time of pre-emption", the draft rules said. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Direct Shopping From Adidas Francchise Store, 60% Discount Original Adidas Shop Now Undo Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals. "In the case of a national emergency in respect of petroleum products or mineral oil, Government of India shall, at all times, during such emergency, have the right of preemption of the mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of without it being refined within India," the rules stated. Live Events This right will be exercised by providing a "fair market price prevailing at the time of pre-emption to the lessee by Government of India, for the petroleum or petroleum or mineral oil products or the crude oil or natural gas taken in pre-emption." The rules however did not define what would constitute a national emergency. Industry sources said war or war-like situations - like the one that the country faced in the military standoff with Pakistan - or natural disasters could constitute a national emergency. "Government of India shall be the sole judge as to what constitutes a national emergency in respect of mineral oils, and its decision in this respect shall be final," the rules said. The draft rules also provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions. Force majeure includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake, pandemic and any other happening which the lessee could not reasonably prevent or control, the rules added.
