The Government of India has notified the Petroleum and Natural Gas Rules 2025. The rules replace earlier frameworks issued in 1949 and 1959. The update aims to modernise India’s upstream sector and simplify operational permissions. The government wants a more efficient, transparent and accountable regulatory system for oil and gas companies.
The revised rules expand lease rights for operators. Companies can now manage exploration, development and production under a single lease. This structure encourages integrated operations and reduces procedural delays. The framework also supports decarbonisation projects within the same lease. The government expects these changes to strengthen domestic capacity and improve investor confidence.
The rules introduce clear environmental and emissions obligations. Operators must follow strict norms on flaring, venting and methane control. The government wants to reduce environmental impact through transparent monitoring. Regulators will track emissions closely to support national climate goals. Companies must adopt cleaner technologies to meet updated requirements.
The new rules mandate statutory obligations for greenhouse gas monitoring and reduction. Each lessee must submit a detailed reduction plan within 180 days of the rules coming into effect. Lessees may also submit the plan along with their field development plan. The plan must list all emission sources and measurement methods. It must also detail the equipment used for monitoring. Companies must set time-bound reduction targets to achieve zero gas flaring. The plan must include milestones that track progress toward this goal.
The government has capped monthly flaring at 0.5 per cent of total field production. Operators must report any exceedance within 24 hours. Companies must submit monthly data on gas produced and flared. They must also file an annual report that outlines actions taken under their emission plan. Regulators may direct operators to undergo third-party verification of metering or reporting.
The rules introduce provisions for geological sequestration projects. Operators must first obtain authorisation for a feasibility assessment. They may then receive a two-year injection permit for pilot testing. A long-term storage permit may follow after successful trials. The government requires strong environmental and disaster management plans for these activities. The framework aims to support carbon capture and long-term emissions mitigation.
The rules also strengthen obligations related to operational data. Lessees must submit structured production information to authorities. The government wants a reliable national database to support policymaking. Officials expect better data to improve transparency across the sector.
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