Centre signs tripartite agreement with Assam, Nagaland to step up oil and gas hunt
New Delhi, June 12
The Ministry of Petroleum and Natural Gas on Friday signed a tripartite Memorandum of Understanding with the state governments of Nagaland and Assam to increase domestic exploration and production of oil and gas.
Petroleum Minister Hardeep Singh Puri said that since Assam alone accounts for nearly 22 per cent of India's crude oil reserves and around 15 per cent of the country's natural gas reserves, while Nagaland possesses significant hydrocarbon potential in the Naga-Schuppen Belt of the Assam-Arakan Basin, resources where hydrocarbons flow naturally and those which have huge untapped resources, the outlook for E&P (exploration and production) activities in the North East is extremely promising.
By creating a framework for cooperation between the concerned Governments, the MoU signed in the presence of Home Minister Amit Shah, provides certainty to investors, facilitates operational continuity, enables regulatory coordination and creates conditions necessary for long-term investment decisions, the minister said.
"The North East gave birth to India's petroleum industry; today, it stands ready to power the next chapter of India's energy journey as Nagaland will produce oil and gas again after 31 years," Puri remarked.
"With the signing of a historic tripartite Memorandum of Understanding between Ministry of Petroleum and Natural Gas, Nagaland and Assam, India's quest towards increasing domestic exploration and production of hydrocarbons under the visionary leadership of Prime Minister Narendra Modi takes a giant leap as a new basin opens up for fresh wildcat exploration," the minister further stated.
He also thanked Nagaland Chief Minister Neiphiu Rio and Assam Chief Minister Himanta Biswa for "rising above differences" to chart the way forward for the region and the country.
The resumption of mineral oil operations will generate direct and indirect employment, stimulate local entrepreneurship, strengthen physical infrastructure, create opportunities for contractors, service providers and small businesses, and contribute significantly to the economic development of surrounding communities and the entire North East Region, the minister added.
— IANS
Reader Comments
Great to see Assam and Nagaland governments cooperating beyond differences. But we need to ensure environmental safeguards are in place—oil exploration can't come at the cost of the fragile ecosystem in the North East. The 'promising' outlook should also include local consent.
"Rising above differences"—that's the key takeaway here! For too long, border disputes between states held back development. Now we're finally seeing progress. This tripartite MoU is a win-win for energy security and for the North East's economy. Modi ji's vision is paying off. 🇮🇳
Interesting move from an investment perspective. A clear regulatory framework and operational continuity are exactly what investors need in India's upstream sector. If the Naga-Schuppen Belt delivers, this could be a significant boost to domestic production. Let's see how quickly things move on the ground.
As someone from Assam, I'm cautiously optimistic. Yes, we have oil and gas, but the real question is how much of the revenue will actually trickle down to the local communities? We've seen promises before. Also, what about the rehabilitation plans? Let's hope this time it's different. 🙏
"New basin opens up for fresh wildcat exploration"—that sounds exciting! India needs to reduce its oil import dependency, and domestic production is the way forward. The North East has been neglected for too long. This MoU is a step in the right direction. Prakash! 🚀
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