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At India Energy Week, Petroleum Minister Hardeep Singh Puri said the new bill doesn’t allow them to impose the windfall tax again.
The amendments to the act propose stability of tenure and stability of terms for oil explorers. Once approved the amendments will pave the way for predictability and stability in a manner that if the terms of the lease are changed to a disadvantage due to the levy of any new tax, the levy or the same tax will be adjusted to the royalty payable to the government as per the initial contract.
This implies, that if ever in future, the government proposes to re-introduce windfall gains tax or decides to levy any new similar tax on exploration and production, then the companies will not have to bear any additional cost and the same levy will be discharged to the government from the overall royalty payments as decided in the contract at the time of awarding the exploration blocks.
“These amendments to the Oilfields (Regulation and Development) Act, 1948 have already been passed by the upper house of the Parliament in the winter session and the government now aims to introduce the amendments for the consideration of the lower house in the session which is slated to resume from 10th March,” said a senior government official.
The move comes after several industry players had flagged concerns to the government, especially after it levied a windfall gains tax on oil production in the country.
After detailed representation, the government on December 2, 2024, withdrew the windfall gains tax, which it had levied on the domestic production of crude oil and export of diesel, petrol, and aviation turbine fuel (ATF),
The levy was introduced on 1st July 2022 amid a surge in the prices of crude oil and other oil products in the international market in the wake of the Russia- Ukraine war.
Meanwhile, at the India Energy Week 2025, India signed multiple strategic agreements and MoUs aimed at enhancing energy security, diversifying supply sources, and fostering innovation in the oil and gas sector.
As part of efforts to diversify crude oil imports, BPCL signed an optional term contract with Petrobras, Brazil, to import up to 6 million barrels of crude. Strengthening India’s transition to a natural gas-based economy, IOCL and ADNOC (UAE) signed a $7 billion contract to source 1.2 MMTPA LNG for 14 years starting in 2026, while BPCL and ADNOC entered into a five-year LNG offtake agreement for 2.4 MMT, extendable by another five years. Expanding India’s role as a regional energy supplier, IOCL signed its first LNG export agreement with Nepal’s Yogya Holdings, ensuring the delivery of 1,000 metric tons (TMT) annually via cryogenic trucks through Odisha’s Dhamra Terminal.
On the technical front, ONGC selected BP as the Technical Services Provider for the Mumbai High field, India’s largest offshore oilfield. BP will conduct a comprehensive review of field performance, implement technological improvements, and work to stabilize and enhance production. Additionally, EIL signed an MoU with BP Business Solutions India Pvt. Ltd. To collaborate on refining, pipeline operations, and emission reduction technologies.
In offshore exploration, ONGC Videsh Ltd. And Petrobras signed an MoU to jointly participate in upstream oil and gas projects in Brazil, India, and third countries, exploring opportunities in trading, low-carbon solutions, and digitalisation. Oil India Limited and Petrobras also signed an MoU for hydrocarbon exploration in India’s deep and ultra-deep offshore basins, aligning with the government’s Hydrocarbon Exploration and Licensing Policy.
