The Ministry of Petroleum and Natural Gas on Friday signed a tripartite Memorandum of Understanding (MoU) with the Governments of Assam and Nagaland to accelerate domestic oil and gas exploration, a move that is expected to revive hydrocarbon production in Nagaland after a gap of 31 years and unlock the vast energy potential of the Northeast.
Announcing the development, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri described the agreement as a historic milestone that would significantly strengthen India’s efforts to increase domestic exploration and production of hydrocarbons under the leadership of Prime Minister Narendra Modi.
In a post on social media, Puri said the signing of the MoU between the Ministry of Petroleum and Natural Gas, Assam and Nagaland marked a major step forward in India’s energy journey.
“With the signing of a historic tripartite Memorandum of Understanding between Ministry of Petroleum & Natural Gas, Nagaland and Assam, India’s quest towards increasing domestic exploration and production of hydrocarbons under the visionary leadership of PM Sh @narendramodi Ji takes a giant leap as a new basin opens up for fresh wildcat exploration!,” he stated.
Highlighting the historical significance of the Northeast in India’s petroleum sector, Puri noted that the region gave birth to the country’s oil industry and is now poised to play a pivotal role in its future energy landscape.
“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,” he stated.
The Minister said the agreement creates a stable and predictable environment for exploration and production activities while providing much-needed confidence to investors interested in the region’s hydrocarbon sector.
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According to Puri, Assam and Nagaland together possess enormous untapped potential that can significantly contribute to India’s energy security objectives.
He pointed out that Assam accounts for nearly 22 per cent of India’s crude oil reserves and around 15 per cent of the country’s natural gas reserves. At the same time, Nagaland’s Naga-Schuppen Belt, which forms part of the Assam-Arakan Basin, is believed to hold substantial untapped hydrocarbon resources.
“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, the outlook for exploration and production activities in the North-East is extremely promising,” he said.
The Minister said the newly signed MoU would provide certainty and operational continuity for ongoing and future hydrocarbon projects, thereby encouraging long-term investments in the upstream petroleum sector.
According to Puri, “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 NE Region.”
