The Western Sümi Area Oil & Natural Resources Committee has asked the Nagaland government to disclose the Memorandums of Understanding (MoUs) signed in connection with oil and natural gas exploration and clarify the state’s revenue-sharing arrangements in the Disputed Area Belt (DAB).
The committee submitted a representation to Chief Minister Neiphiu Rio, seeking details of the agreements concerning exploration and extraction and asking whether Nagaland has received its due share of revenue from oil operations in the DAB.
It also proposed the establishment of an oil refinery and gas plant at Niuland and Ganesh Nagar, and urged the government to ensure that oil and gas exploration is carried out in accordance with the constitutional protections under Article 371A.
The representation comes amid renewed efforts to resume oil and natural gas exploration in Nagaland. The Centre, Assam and Nagaland signed a tripartite MoU on June 11 to facilitate mineral-oil operations in the DAB along the Assam-Nagaland border. The state government has said it is also working towards a Nagaland-specific regulatory framework in conformity with Article 371A.
The committee cited a figure of Rs 9,903.63 crore as revenue generated by Assam from eight drilling points in the DAB between 2017 and 2022 and sought clarification on Nagaland’s share.
However, available parliamentary data from 2022 stated that ONGC was operating eight fields in the DAB, while the Rs 9,903.62 crore figure referred to royalty paid on crude oil from all oil fields located in Assam over the five financial years up to 2021-22. The parliamentary data did not establish that the entire amount came from the eight DAB fields.
The committee’s demand for clarification on DAB revenue comes against a longstanding dispute over oil extraction in the area. The Nagaland government has previously discussed an arrangement for revenue sharing from petroleum operations across the DAB.
