GoI Notifies New P&NG Rules 2025 to Boost Investment and Ease of Doing BusinessIn December 2025, the Government of India (GoI) notified the new ‘Petroleum and Natural Gas (P&NG) Rules, 2025’, introducing a revised regulatory framework designed to attract investment and simplify operations in India’s oil and gas sector. The announcement was made by Union Minister Hardeep Singh Puri, Ministry of Petroleum and Natural Gas (MoPNG).
Highlights of New Framework:
Single Licence: Under the new framework, companies will now operate through a single petroleum lease replacing the earlier system of multiple licences.
Lease Tenure: The new framework provides lease tenures of up to 30 years and be extended for the full economic life of a field.
Financial Penalties: Criminal penalties for violations have been eliminated and replaced with higher financial penalties of Rs 25 lakh, with an additional Rs 10 lakh per day for continued non-compliance.
Faster Approval: The new rules also stipulate a time limit on approvals. Applications for petroleum leases must be decided within 180 days, ensuring timely approvals.
Competent Authority: The Oil Industry Safety Directorate has been designated as the competent authority for offshore safety, audits and standard-setting across exploration and production activities.