Question 1

The new 'basket petroleum lease' transfers ownership of the oil and gas reserves to private energy companies.

Accepted Answer

The state retains absolute sovereign ownership of the underlying minerals. The rules merely grant a unified, long-term operational lease (up to 30 years) to extract the resources.

Question 2

Oil and gas operators are strictly prohibited from generating renewable energy to prevent mixing of commercial operations.

Accepted Answer

The 2025 Rules actively encourage 'comprehensive energy projects,' explicitly allowing operators to set up solar, wind, or hydrogen projects on oilfields.

Question 3

Because petroleum is a subject of national importance, the Central Government independently grants all petroleum leases across India.

Accepted Answer

For onshore resources within a state's territory, the State Government actually grants the lease, though it requires the prior approval of the Central Government.

Question 4

Consider the following statements regarding the Petroleum and Natural Gas Rules, 2025:
1. Violations of lease terms under the new rules attract mandatory imprisonment alongside financial penalties.
2. The rules introduce a 'basket petroleum lease' that replaces the need for separate exploration and mining licenses.
3. For onshore oilfields, the petroleum lease is granted directly by the Central Government without the involvement of the State Government.
How many of the above statements are correct?

Accepted Answer

(a) Only one — Statement 1 is false: The 2025 Rules decriminalized offenses, removing imprisonment and replacing it with higher financial penalties (up to ₹25 lakh plus daily fines). Statement 2 is true: A single 'basket lease' now covers exploration, development, and production of all hydrocarbons. Statement 3 is false: Onshore leases are granted by the respective State Government with the prior approval of the Central Government. Therefore, only one statement is correct.

Question 5

Match the specific provisions of the Petroleum and Natural Gas Rules, 2025 (List I) with their corresponding details (List II):
List I
A. Default Dispute Resolution Seat (Domestic Companies)
B. Maximum time limit to decide lease applications
C. Maximum Initial Lease Tenure granted
D. Designated Competent Authority for Offshore Safety

List II
1. 180 days
2. New Delhi
3. 30 years
4. Oil Industry Safety Directorate (OISD)

Select the correct answer using the code given below:

Accepted Answer

(a) A-2, B-1, C-3, D-4 — Under the 2025 Rules, the default seat of arbitration for domestic disputes is codified as New Delhi (A-2). Applications for petroleum leases must be processed and decided within 180 days (B-1). The maximum initial lease tenure is up to 30 years, extendable for the field's economic life (C-3). The Oil Industry Safety Directorate (OISD) is formally designated for offshore safety and audits (D-4). Option (a) is perfectly matched.

Question 6

Assertion (A): The Petroleum and Natural Gas Rules, 2025 permit operators to set up renewable energy projects, such as solar and wind, on their leased oilfields.
Reason (R): The government has exempted domestic oilfields from all greenhouse gas emission reduction targets to maximize fossil fuel extraction.
Select the correct answer from the codes given below:

Accepted Answer

(c) A is true but R is false. — Assertion (A) is true because the 2025 Rules introduce 'comprehensive energy projects,' allowing operators to integrate renewables like solar, wind, and hydrogen within oilfields. Reason (R) is false because the government has not exempted oilfields from emission targets; on the contrary, the new rules mandate strict time-bound plans for zero routine gas flaring and reducing greenhouse gas emissions to actively decarbonize upstream operations.

Petroleum and Natural Gas Rules 2025 Notified

Notification of Medical Faculty Qualifications Regulations 2025