OIL expresses optimism over starting oil exploration in Nagaland

Mokokchung, 19 August (MTNews): Chairman and Managing Director of Oil India Limited (OIL) and Chairman of Numaligarh Refinery Limited (NRL), Dr Ranjit Rath, shared his optimism about the prospect of starting oil exploration in Nagaland during a virtual discussion with NELive on 19 August.

Dr Rath stated that he was “very hopeful” of the imminent commencement of exploration activities in Nagaland, emphasizing the region’s promising potential for oil prospectivity. He acknowledged ongoing discussions between the Government of Nagaland, the Government of Assam, and the Central Government, expressing confidence that these discussions would lead to a resolution allowing exploration to begin.

The Economic Times had earlier reported that Oil India Limited holds a significant 3000 sq. km area for exploration in Nagaland. Dr Ranjit Rath had earlier revealed in May 2023 during an interview with ETV Bharat that the company anticipates an agreement between the governments of Assam and Nagaland, clearing the way for exploration work.

Dr Rath highlighted, “The border areas of the two States have huge potential for oil exploration. An early agreement will enable OIL to pursue its exploration work,” underscoring the untapped potential awaiting exploration.
This statement holds significance in light of the opposing stance of the National Socialist Council of Nagaland (NSCN-IM) and Naga National Political Groups (NNPGs), who have voiced their opposition to joint explorations along the Assam-Nagaland border until the long-standing Indo-Naga political dispute is resolved.

Earlier this year, reports emerged that Nagaland Chief Minister Neiphiu Rio and Assam Chief Minister Himanta Biswa Sarma had agreed ‘in-principle’ to an MoU on oil exploration in disputed areas along the inter-state boundary. The proposed arrangement aimed to extract oil and share royalties between the two neighboring states.

Advisor for Soil and Water Conservation and IPR and MLA, Imkong L Imchen, affirmed in a May interview with PTI that the 50:50 oil royalty sharing had not been proposed until then. Nonetheless, due to the efforts of Chief Minister Neiphiu Rio and intervention from the Union Home Minister, a breakthrough had been achieved on a principle agreement.

However, this development encountered opposition from civil society and Naga political groups. Subsequently, the Nagaland state government announced in May that exploration in disputed areas with Assam would only proceed after consulting all stakeholders and tribal bodies in the region.

To address this issue, the Governor of Nagaland established a Ministerial Group on Petroleum & Natural Gas on 24 July with Chief Minister Neiphiu Rio as Chairman and Nagaland Chief Secretary as the member secretary.

The group includes members such as TR Zeliang, Temjen Imna Along, and other legislators. However, this has also been met with opposition from some sections of society.

Oil India’s exploration efforts have extended across various northeastern states, including the Assam basin, Assam-Arakan valley, bordering regions of Nagaland, Mizoram, Tripura, and the North Bank of the Brahmaputra. Furthermore, the company has signed MoUs with prominent Northeastern universities to enhance research initiatives. OIL signed agreements with Gauhati University, Dibrugarh University, Manipur University, Nagaland University, and Rajiv Gandhi University at the Field Headquarters in Duliajan, Assam, in October 2022.

Notably, the company achieved its highest-ever net profit in the financial year 2022-23, reaching Rs 6,810.40 crore, marking a significant YoY increase of 77.20%. This increase is attributed to heightened operating income and growth in oil and gas production.

OIL is also actively working on extracting ethanol from bamboo in the Northeast, a prospect that is expected to benefit the people as bamboo is endemic to the region.