The Ministry of Petroleum and Natural Gas (MoP&NG) on June 04, 2026, issued a notification regarding amendments in the Oilfields (Regulation and Development) Act, 1948.
The following has been stated:-
•The amendment revises royalty rates for crude oil and casing head condensate across onshore, shallow water, deep water, and ultra-deep-water fields under various exploration and production regimes.
•Higher royalty rates apply to onshore production, while deep-water and ultra-deep-water projects continue to receive concessional rates, especially during the first seven years of commercial production.
•The changes also specify royalty rates for areas awarded under the New Exploration Licensing Policy (NELP), Discovered Small Field (DSF) Policy, and Hydrocarbon Exploration Licensing Policy (HELP).
•Additionally, the amendment clarifies the method of royalty calculation, prescribing a cum-royalty basis for certain legacy onshore contracts and an ex-royalty basis for all offshore areas and most other contracts.
•These revisions aim to rationalize the royalty framework and encourage investment in exploration and production activities.
This notification shall be deemed to have come into force with effect from May 11, 2026.
The detailed notification is given in the document below.
[Notification No.: S.O. 2860(E)]
