The Indian government has published the Offshore Areas Operating Right Rules, 2024 to govern offshore areas for mineral exploration and production. These rules were published on October 16, 2024 and come into immediate effect.
Key Points of the Rules
Offshore areas will only be available for grant of operating rights after being notified in the Official Gazette by the administering authority. The government, government companies, or corporations have the priority to obtain operating rights for reserved offshore areas.
Lease Duration shall be as follows
- Production leases granted to government entities will be for a period of 50 years.
- Composite licenses granted to government entities will be for a period of three years.
Successful bidders in the auction process will be granted exploration and production leases. The terms and conditions of these leases will be outlined in Form I and Form III, respectively.
Lessees must report any mineral discoveries not specified in their production lease within 60 days of discovery. They are prohibited from winning or disposing of these minerals without including them in their production lease deed.
