Centre, Assam & Nagaland ink MoU for oil exploration

• A tripartite Memorandum of Understanding (MoU) was signed between the government of India, the government of Assam and the government of Nagaland for facilitating mineral oil operations in the Assam-Nagaland boundary areas.

• Union Home Minister Amit Shah, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio were present on the occasion.

Highlights of the MoU:

• The northeast region possesses not only vast reserves of oil and gas but also an immense wealth of minerals.

• Exploration activities had remained stalled for more than three decades in the region due to jurisdictional differences.

• The tripartite agreement reflects the shared commitment of the government of India and the state governments of Assam and Nagaland to ensure a stable, secure, and conducive environment for petroleum exploration and production activities in the identified areas.

• This agreement has opened up new possibilities for mineral mining and expanded the scope for exploration across Nagaland — beyond just the six designated fields.

• The agreement seeks to facilitate exploration and production activities across more than 1,000 sq km of land along the Assam-Nagaland border, an area believed to possess substantial energy and mineral reserves.

• There is potential for the current extraction capacity of 1,000-1,500 barrels per day to increase by more than ten-fold.

• The MoU establishes a coordinated framework for facilitating mineral oil operations in the area, ensuring operational continuity, safety and security of personnel and assets, and effective coordination among all stakeholders. 

• The framework is expected to support exploration and production activities, encourage investment in the upstream petroleum sector and contribute towards India’s energy security objectives.

• The agreement is expected to provide greater certainty and stability for ongoing and future hydrocarbon operations in the area.

(The author is a trainer for Civil Services aspirants.)