ONGC, Oil India, RIL Share Price Gain as Lok Sabha Passes Oilfields Amendment Bill

Shares of upstream oil companies—Oil and Natural Gas Corporation (ONGC), Oil India, and Reliance Industries (RIL) share price rose up to 2.5% on March 13, 2025. This gain follows the passage of the Oilfield Amendment Bill, 2024, which is expected to improve operations in the oil and gas sector.

At 9:56 AM:

• ONGC share price was up 1.8%
• Oil India share price rose 1.7%
• RIL share price gained 0.53%
  In comparison, the BSE Sensex was up 0.13% at 74,125.6. ONGC share pricetopped the Nifty50 gainers list, while RIL was among the major winners on Sensex.

Key Highlights of the Oilfield Amendment Bill

The bill introduces significant changes in the exploration and production (E&P) sector:

• Separates petroleum operations from mining leases
• Clarifies rules for granting and extending petroleum leases
• Establishes a new dispute resolution mechanism

Government’s View on the Bill

Petroleum Minister Hardeep Singh Puri stated that the bill will:

• Boost ease of doing business
• Attract more investment in India’s oil and gas sector
• Unlock India’s hydrocarbon potential

He emphasised that while India will continue using conventional energy for some time, expanding oil exploration and production is crucial. The bill does not favour public or private players but ensures a level playing field for all.

Replacing Old Laws and Expanding Exploration

• The bill replaces outdated laws from 1948, last amended in 1969.
• It introduces the concept of a ‘petroleum lease’, legally separate from a mining lease.
• The new law broadens the definition of hydrocarbons by replacing “oils” with “mineral oils,” covering a wider range of resources.

New Dispute Resolution Mechanism

To resolve conflicts related to petroleum leases, the bill allows the government to use alternative dispute resolution (ADR) methods, which can take place within or outside India.

Conclusion

The passage of the Oilfield Amendment Bill of 2024 marks a major step in modernising India’s oil and gas sector. By simplifying regulations and improving investment conditions, it aims to increase domestic production and reduce dependency on imports. The positive market response suggests investor confidence in the reforms.

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