Shares of oil exploration companies gained momentum after the government approved a long-awaited overhaul of India’s oilfield regulations, boosting investor confidence. The Oilfield Amendment Bill, 2024, modernizes petroleum laws, replacing outdated provisions from 1948. It introduces a separate petroleum lease, distinct from mining regulations, to streamline operations.
The bill also broadens exploration by redefining ‘oils’ to include more hydrocarbons, opening new opportunities in the sector. Additionally, it proposes improved dispute resolution mechanisms, allowing arbitration outside India if necessary. These changes aim to attract investment, enhance efficiency, and support India’s energy security in the evolving global oil market.
Petroleum Minister Hardeep Singh Puri stated that the legislation aims to improve the ease of doing business, attract investment in oil and gas production, and unlock India’s hydrocarbon reserves. He emphasized that while conventional energy remains crucial, the reforms will encourage new exploration without favoring public or private players.
Initially passed in the upper house in December, the bill is set to offer regulatory clarity, making India’s oil and gas sector more investor-friendly. The market reacted positively, with shares of leading exploration and production (E&P) companies rising following the announcement, reflecting investor confidence in the sector’s growth prospects.
Here are the oil exploration companies in focus after the Oilfields bill gets nod in Lok Sabha:
1. Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Limited explores, develops, and produces crude oil, natural gas, and value-added products in India, as well as acquires oil and gas acreages outside of India for exploration, development, and production, downstream (refining and marketing petroleum products), petrochemicals, and power generation.
With a market capitalization of Rs 2.89 lakh crore, the shares were trading at Rs 229.75 per share, increasing around 1.91 percent as compared to the previous closing price of Rs 225.45 apiece.
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2. Oil India Ltd
Oil India Limited is an integrated upstream exploration and production firm established in India that produces crude oil and natural gas. Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy and Others are among the company’s business segments.
With a market capitalization of Rs 61,656.57 crore, the shares were trading at Rs 379.05 per share, increasing around 0.91 percent as compared to the previous closing price of Rs 375.65 apiece.
3. Reliance Industries Ltd
Reliance Industries Limited is an India-based company, which is engaged in the activities of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.
With a market capitalization of Rs 16.81 lakh crore, the shares were trading at Rs 1,242.60 per share, decreasing around 0.38 percent as compared to the previous closing price of Rs 1,247.40 apiece.
Written by Abhishek Singh
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