Legal Firm Guides Revision of Model Revenue Sharing Contract to Align with New Regulations.
Petroleum Ministry India.
Cyril Amarchand Mangaldas (CAM) has played a key role in advising the Ministry of Petroleum and Natural Gas on the drafting of the Petroleum and Natural Gas Rules, 2025 (“Rules”), following the introduction of the Oilfield (Regulation and Development) Amendment Act, 2025. The new legislation introduces significant changes to the petroleum sector, including the requirement for obtaining a petroleum lease as a prerequisite for conducting petroleum operations and empowering the Ministry to formulate comprehensive rules covering multiple aspects of the industry.
CAM’s Role in Drafting the Rules
Under the guidance of Cyril Amarchand Mangaldas, the Petroleum and Natural Gas Rules, 2025 were drafted to ensure compliance with the Amendment Act and its impact on the industry. These Rules address critical issues such as:
- Tenure and dispute resolution mechanisms in the petroleum sector.
- Treatment of mineral oil data and safety protocols at oilfields.
- Unitisation and stabilisation of petroleum leases.
- Sustainability practices and comprehensive energy projects.
The drafting process involved extensive consultation with industry stakeholders, and the final rules reflect their feedback and inputs. CAM was instrumental in ensuring that the regulatory framework aligns with the evolving needs of the sector while maintaining industry standards.
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Revision of Model Revenue Sharing Contract (MRSC)
In addition to drafting the new rules, CAM also led the revision of the Model Revenue Sharing Contract (MRSC) executed under the Open Acreage Licensing Policy (OALP). The revisions were necessary to align the MRSC with the changes introduced in the new Rules. CAM’s team worked on incorporating recommendations from stakeholders and ensuring that the MRSC reflects the updated legal, fiscal, and statutory regime under the new Rules.
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CAM’s Advisory on Key Aspects
CAM’s advisory role extended to various aspects of the MRSC, including:
- Contractual, regulatory, and transactional matters related to the petroleum lease and operations.
- The rights and obligations of contractors vis-à-vis the Government.
- Alignment with the Petroleum and Natural Gas Rules, and other applicable laws.
The team also provided expert advice on dispute resolution provisions, intellectual property, and data privacy issues within the petroleum sector.
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CAM’s Transactional and Dispute Resolution Expertise
The advisory team at CAM, led by Uday Khare (Partner), was supported by Angira Chakraborty (Principal Associate), and Associates Lovika Tyagi and Sanjna Mehrotra.
- Anuradha Mukherjee (Partner, Head – Disputes, North India) and Omar Ahmad (Partner) provided guidance on the dispute resolution provisions.
- Arya Tripathy (Partner), assisted by Milind Yadav (Associate), advised on intellectual property and data privacy provisions under the new framework.
- Soumya Dasgupta (Principal Associate) and Nidhi Singh (Associate) also played significant roles in advising on dispute resolution and other contractual aspects.
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The Petroleum and Natural Gas Rules, 2025 and the updated Model Revenue Sharing Contract (MRSC) represent a significant overhaul of the regulatory and contractual landscape for the petroleum sector in India. Cyril Amarchand Mangaldas has played a pivotal role in shaping these rules and ensuring that the framework aligns with the new regulatory environment, providing clarity and structure for stakeholders in the petroleum industry.
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