India’s Oil & Gas Sector: Key Developments & Policy Updates in 2025

The oil & gas industry plays a huge role in India’s economic growth, energy security, and industrial development. India’s oil and gas industry is always changing, and 2025 is no different. As one of the fastest-growing energy markets, the country is witnessing policy changes, infrastructure investments, changes in trade, and technological advancements to improve domestic production and attract foreign investment.

In 2025, several new initiatives and policy updates in the oil & gas sector are expected to reshape the oil industry in India, driving efficiency, sustainability, and self-reliance. This blog explores the latest developments and regulatory changes impacting the industry.

Legislative Reforms: Oilfields (Regulation and Development) Amendment Bill, 2024

A big development is the passage of the Oilfields (Regulation and Development) Amendment Bill, 2024, by the Lok Sabha on March 12, 2025. This amendment modernizes the original 1948 Act, broadening the definition of mineral oils to include hydrocarbons such as crude oil, natural gas, petroleum, shale gas, and oil. The revised legislation has a goal to provide clarity in resource governance, attract private investment, and address environmental concerns, thereby fostering growth in the oil & gas industry.

Open Acreage Licensing Policy (OALP) and Exploration Initiatives

During the India Energy Week (IEW) 2025, the government unveiled the 10th round of the Open Acreage Licensing Policy (OALP X). This is basically a way for the government to let companies explore and drill for oil and gas in new areas. This initiative is designed to accelerate upstream sector growth by offering more blocks for exploration and production. Their goal is to increase domestic production, so India won't have to rely as much on importing its oil. To help with this, the National Seismic Program continues to support exploration efforts, with advancements in artificial intelligence enhancing data analysis and operational efficiency.

Strategic Partnerships and Trade Dynamics

In response to global trade dynamics, Indian refiners are adjusting their crude oil procurement strategies. For example, Reliance Industries has stopped importing Venezuelan oil due to newly imposed U.S. tariffs. Conversely, freight rates for Russian oil exports from Baltic ports to India are decreasing, as more Western shipowners return to the market following price changes. This just shows how India is always making changes to keep its oil supply steady, no matter what’s happening around the world.

Natural Gas Demand and Infrastructure Expansion

India's natural gas demand is projected to increase by nearly 60% by 2030. So, India is preparing for it. To keep up this surge, initiatives such as the Northeast Gas Grid are underway, connecting oil and gas fields in Assam to improve production and distribution capabilities. Additionally, GAIL India plans to procure three LNG cargoes annually over the next three years, reinforcing the nation's commitment to diversifying its energy mix.

Energy Transition and Renewable Integration

In line with global energy transition trends, Indian companies are diversifying into renewable energy sectors. For example, Oil and Natural Gas Corporation (ONGC) aims to increase its renewable capacity to 10 gigawatts by 2030 and is exploring opportunities in oil-to-chemicals. These initiatives reflect the oil & gas industry's commitment to reducing carbon emissions and integrating sustainable practices.

Future Outlook

The oil industry in India is at a transformative juncture, marked by progressive policy updates in the oil & gas sector, strategic international collaborations, and a concerted push towards energy diversification. These developments not only improve India's energy security but also position the nation as a pivotal player in the global energy landscape. As the country prepares for rising energy demands—projected to reach up to 7 million barrels per day—these developments are crucial for ensuring energy security and sustainability moving forward.

As companies navigate these changes, platforms like Nexizo give real-time insights into tenders, contracts, and procurement opportunities in the oil and gas sector. Stay ahead in 2025 with Nexizo’s intelligent sourcing solutions!