Union Petroleum Minister Hardeep Singh Puri unveiled major reforms rationalizing royalty rates and methodologies for crude oil, natural gas, and casing head condensate under the Oilfields (Regulation and Development) Act. This move follows 2025 amendments to the ORD Act and PNG Rules, eliminating inconsistencies across regimes to create a stable, investor-friendly framework boosting India’s upstream energy sector.
Royalty Reforms Breakdown: Lower Rates Across Crude Oil, Gas Regimes
The revised schedule introduces uniform, lower royalty rates for onshore, shallow water, deepwater, and ultra-deepwater blocks, simplifying payments for producers like ONGC and Oil India. Casing head condensate—light hydrocarbons from gas production—also sees streamlined calculations, replacing complex variations with predictability. Puri described it as a “new era” driving exploration, production growth, and energy security under PM Modi’s leadership.
Upstream Sector Impact: Investor Boost and Energy Goals
These changes aim to accelerate E&P activities by providing regulatory clarity, encouraging fresh investments in high-risk deepwater areas. Upstream stocks like ONGC gained attention as the policy supports domestic output amid global energy transitions. The reform underscores India’s decade-long push for a competitive, transparent oil and gas landscape.
