Government will have the first right on oil and gas during national emergency, this is said in the draft rules

As per the draft rules being prepared for amendment of laws pertaining to the petroleum industry, during a national emergency, the government will enjoy priority over all country-produced oil and natural gas. Crude is tapped from beneath or below the sea level and processed into petrol and diesel-type fuels. In addition, natural gas is utilized for generating electricity, making fertilizer, for vehicle use with CNG, and piped cooking gas. The inclusion of such rights within the draft pertaining to amendment of rules is made to allow the government to give priority to national interest and national well-being in times of emergency.

According to the draft rules, producers of oil and natural gas will be paid "fair market price prevailing at the time of pre-emption". The Ministry of Petroleum and Natural Gas has invited comments on the draft rules. Earlier this year, Parliament passed the Oil Sector (Regulation and Development) Amendment Bill. The Bill proposes to replace archaic provisions of the 1948 Act to boost domestic production, attract investments and support the country's energy transition goals.

The rules state that, "In case of a national emergency in respect of petroleum products or mineral oil, the Government of India may, at all times during such emergency, have the right of pre-emption over mineral oils, refined petroleum or petroleum or mineral oil products produced from crude oil or natural gas extracted from the leased area, or such crude oil or natural gas which the lessee is permitted to sell, export or dispose of without refining within India, and the Government shall have a right of pre-emption over it."