The government is set to introduce a key bill in the upcoming winter session of Parliament, which will help boost domestic oil and gas production.

The Oilfields (Regulation and Development) Amendment Bill, 2024, seeks to provide policy stability to investors and promote ease of doing business in the sector.

Speaking at the Geo India 2024 conference, oil minister Hardeep Singh Puri said the government aims to provide policy stability to investors and promote ease of doing business in the sector.

The Oilfields (Regulation and Development) Amendment Bill, 2024, introduced in the Rajya Sabha in August, aims to decriminalise certain provisions, introduce penalties, and expand the definition of mineral oils to include various unconventional resources.

“We have a formidable 651.8 million tonnes of recoverable crude oil reserves and 1138.6 billion cubic metres of recoverable natural gas reserves nestled within our sedimentary basin,” Puri said.

ADNOC deal

GAIL (India) Ltd has signed a 10-year deal to buy up to 0.52 million tonnes per annum of liquefied natural gas (LNG) from Abu Dhabi’s ADNOC Gas starting 2026. This is the first sales and purchase agreement that ADNOC Gas has signed with an Indian buyer.

The LNG will be delivered in six cargoes every year from ADNOC Gas’ Das Island facility.

Gas supply cut

The government has once again reduced domestic natural gas supplies to CNG retailers, potentially impacting their profitability.

Indraprastha Gas Ltd. (IGL), a leading CNG retailer in Delhi and neighbouring cities, said in a stock exchange filing that domestic gas allocation has been cut by about 20 per cent effective November 16. This is the second such cut in a month, with a 21 per cent reduction on October 16.

IGL sources domestic gas to meet CNG sales volumes at a government-fixed price of $6.5 per million British thermal units.