The draft rules say

In a national emergency, the government will hold a preemptive right to all oil and gas produced in the country. File | Image source: Hindu

Under the draft rules under the legislation of the converted oilfields, the government will have a preemptive right to all oil and gas produced in the country.

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Pre-emptive power (or pre-emptive power) is the legal right of the parties (usually government or existing shareholders) to purchase or claim products, assets or resources before providing them to others.

Including such rights extracted from underground or below the sea and refined into fuels such as gasoline and diesel – as well as gas used to generate electricity, produce fertilizers, CNG for vehicles and supply of cooking gas, aimed at helping the government prioritize national interests and ensure access to public welfare during emergencies.

The draft rules say oil and gas producers will receive “fair market prices that prevail when preemptively”.

The Ministry of Oil and Gas invited comments on the draft rules after the Parliament passed the Oilfield (Regulations and Development) amendment earlier this year, which replaced outdated provisions in the 1948 bill to promote domestic production, attract investment and support the country’s energy transition goals.

If an emergency is imposed on oil products or mineral oil in a national emergency, the Indian government should always be entitled to advance the mineral oil, refined oil or petroleum or mineral oil products, crude oil or natural gas extracted from leased oil or natural gas, or crude oil extracted from unsold crude oil or natural gas, or extracted from raw natural gas, outside of the place, outside of the original natural gas, can be used in crude oil or natural gas, in order to indicate crude oil or natural gas,” the statement said.

This right will exercise this right by providing “fair market prices prevailing when preempting to lessees” in the Government of India, oil or mineral petroleum products or preemptive crude oil or natural gas. ”

However, the rule does not define what will constitute a national emergency. Industry sources say war or war-like situations — like the situations facing the country’s military stalemate with Pakistan — or natural disasters could constitute a national emergency.

The rule says: “The Indian government should be the sole judge of mineral oil that constitutes a national emergency, and its decision in this regard will be final.”

The draft rules also stipulates that oil and gas operators violate their obligations under force majeure conditions.

Force majeure includes the actions of God, war, rebellion, riots, civil unrest, tides, storms, tides, floods, lightning, explosions, explosions, fires, earthquakes, pandemics, and any other occurrences that the lessee cannot reasonably prevent or control.