India Oil and Gas Royalty Rate Rationalisation Reform

awarded

The government of India has overhauled the royalty rates on oil and gas production through a gazette notification dated May 8, 2026. The reform introduces a revised and rationalised royalty rate structure for crude oil, casing head condensate, and natural gas across all exploration and production regimes, including offshore deepwater and ultra-deepwater blocks, and areas under various policies such as DSF and HELP. The reform aims to improve exploration economics, incentivise fresh investments, and create a stable, predictable, and investor-aligned framework for the upstream energy sector.