By a notification dated 14 June 2023 (read here), the Ministry of Corporate Affairs has exempted petroleum assets leased by a company undergoing insolvency proceedings from the moratorium provisions of the Insolvency and Bankruptcy Code, 2016. The exemption ensures that oil wells do not become inactive if a company faces insolvency, allowing the Ministry of Petroleum and Natural Gas to repossess and transfer assets like oil wells to other parties.
This initiative seems oriented towards averting the idleness of crucial national assets within the petroleum sector. Considering global challenges affecting oil supplies due to geopolitical factors, the Government of India is also actively engaged in efforts to boost the country's oil production. As part of this strategy, the Government of India recently offered 26 new oil and natural exploration areas for bidding in the ninth Open Acreage Licensing Policy round (read here).
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