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Environment, Health and Safety Central Ministry of Petroleum and Natural Gas Petroleum Act, 1934

Deregulation of sale of domestically produced crude oil and more freedom to operators or industry

11-Jul-2022 | F. No. Expl-15019 (25)/161/2019-ONG-D-V (E-34367).

The Ministry of Petroleum and Natural Gas notifies deregulation of sale of domestically produced crude oil with the objective of creating a level playing field, promoting competition and incentivizing investment in entire Oil and Gas value chain with a focus on ease of doing business and more freedom to operators or industry. Accordingly: 1. Government of India should cease allocation of crude oil and condensate with effect from 01.10.2022. 2. The condition in Production Sharing Contracts (PSCs) to sell crude oil to Government or Government Nominee or Government Companies, should be waived off, if such a condition is mentioned in any PSC and the Contract should stand amended accordingly. 3. Unless the contract provides otherwise, royalty, cess, other statutory levies and contractual payments such as profit petroleum, revenue share, etc. should be valued based on the actual sales price or the price of the Indian Basket of crude oil, as calculated by Government nominated Agency on monthly basis, whichever is higher. 4. Exports of domestic crude oil will continue to be not permitted. 5. In case any further clarification or interpretation in respect of this matter is required, Ministry of Petroleum and Natural Gas will issue such necessary clarification or interpretation. For more details, refer the attachment.

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