Oil & Gas in India

Total petroleum resources in India are estimated at around 28 billion tonnes and total coal bed methane resources in 16 blocks are estimated to be 820 BCM and prognosticated gas resources from the gas hydrates are estimated to be 1894 TCM. Production of natural gas is at present at the level of around 86 MMSCMD. New Exploration Licensing Policy (NELP) of the Government of India provides a level playing field for all the parties.

The Ministry of Petroleum and Natural Gas is the nodal ministry and the Directrate General of Hydrocarbons processes and reviews Petroleum Exploration Licences and Mining Licences for the Ministry. The Petroleum and Natural Gas Regulatory Board regulates downstream activities such as refining, processing, storage, transportation, distribution, marketing and sale of petroleum products.

FDI up to 100% is permitted through automatic route in petroleum and natural gas sector other than refining. In the refining sector, FDI up to 100% under automatic route and up to 26% through Foreign Investment Promotion Board are permitted for private companies and public sector units respectively. Petroleum Act, 1934, Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Oilfields (Regulation and Development) Act, 1948 and Oil Industry (Development) Act, 1974, the Petroleum and Natural Gas Regulatory Board Act, 2006 are the important laws on oil and gas sector.

CLG Oil & Gas Practice