Upstream oil companies` stocks trade higher as Oilfields bill passed in Lok Sabha
Upstream oil companies’ stocks trade higher after the Lok Sabha cleared the Oilfields (Regulation and Development) Amendment Bill, 2024, that seeks to amend the existing law governing exploration and production of oil and gas as well as delink petroleum operations from mining operations to boost investment in the sector. The bill was passed by the Rajya Sabha on December 3, 2024.
Oil India is currently trading at Rs. 376.95, up by 10.25 points or 2.80% from its previous closing of Rs. 366.70 on the BSE. The scrip opened at Rs. 370.10 and has touched a high and low of Rs. 382.30 and Rs. 368.50 respectively. So far 163216 shares were traded on the counter.
Selan Exploration Technology is currently trading at Rs. 532.20, up by 12.35 points or 2.38% from its previous closing of Rs. 519.85 on the BSE. The scrip opened at Rs. 504.00 and has touched a high and low of Rs. 555.25 and Rs. 504.00 respectively. So far 2066 shares were traded on the counter.
Oil & Natural Gas Corporation is currently trading at Rs. 226.15, up by 1.50 points or 0.67% from its previous closing of Rs. 224.65 on the BSE. The scrip opened at Rs. 228.45 and has touched a high and low of Rs. 230.40 and Rs. 224.90 respectively. So far 466545 shares were traded on the counter.
Meanwhile, Petroleum and Natural Gas Minister Hardeep Singh Puri said India is the only country in the world where in the reference period of last three years, the prices of petrol and diesel have actually come down. He said prices in neighbourhood countries are 15 to 25 per cent higher than in India. Equally, prices in Western Europe and US are much higher than in India. While moving the bill for consideration and passage in the Lok Sabha, Puri said it does not alter the existing level-playing field for both public and private sectors.
The minister said the oil bill aims to resolve one of the biggest grievances of global oil companies interested in investing in India by providing stability in operation, both in terms of tenure of the lease and the condition. The bill also does not alter the rights of the states, which will continue to give petroleum leases and receive royalties as before. The bill also does not alter the existing level-playing field and offers no preference to either the private or the public sector. Among others, the bill aims to decriminalise some of the provisions of the original Oilfields (Regulation and Development) Act, 1948, by introducing penalties, adjudication by an adjudicating authority and appeal as against the order of adjudicating authority.
