NPF Legislature Party leader Kuzholuzo Nienu, speaking on matters of urgent public importance under rule-54, urged the Nagaland government to take concrete steps to resume the oil and gas exploration and production in Nagaland.
Nienu was speaking on the first day of the twelfth session of the thirteenth Nagaland Legislative Assembly.
He said there is an urgent need to resume the exploration and mining of petroleum in the state before the golden liquid becomes redundant and loses its utility and thereby its market value. Oil today, Nienue stated, is no longer considered to be a primary source of energy for the future owing to climate change and advancement in technology.
The world is shifting towards cleaner and sustainable and renewable energy and India has already achieved 10% Ethanol Blending which is expected to reach 20% by the year 2025, a vision of the Prime Minister, Nienu said.
When it comes to oil and gas exploration, Nienu pointed out, the special status enjoyed by Nagaland under Article 371(A) in the constitution of India has also led to conflicts between the land owners, civil societies, the state government, oil companies and even the Government of India, causing undue interferences and delays.
Nienue highlighted that the Nagaland Legislative Assembly passed a resolution in 2010, conferring itself with the power to make laws and regulations with respect to oil and gas sector. Subsequently the NLA in 2012 had passed the Nagaland Petroleum and Natural Gas, Rules and Regulations (NP&NGRR) 2012, wherein the Nagaland government issued Expression of Interest (EOI) for 11 oil and gas blocks in Nagaland.
However, the GoI termed the NP&NG Rules and Regulations 2012 unconstitutional and invalid citing that oil and gas sector comes under the Union List, explained Nienue.
He continued saying all hope of exploration and production activities for oil and gas in the state stopped after the Guwahati High Court filed a Suo Moto Case against the NP&NG RR 2012. However, in order to find a way for resuming oil and gas exploration activities in the state, the Union Minister for Petroleum initiated a bipartite agreement with the state government, the MOU of which is to be finalised and signed very soon, Neinu said.
He urged the stakeholders including the state government to monetize the existing oil fields and get immediate return since exploration activities may take an average of five to seven years. The NPF Legislature Party leader suggested that the state government formulate policies wherein it can have a Participating Interest (PI) of 10% to 15% in the already existing oilfields like Champang and Tissori.
Minister of Soil and Water Conservation and Geology and Mining V Kashiho Sangtam presented a brief status of petroleum & natural gas affairs in Nagaland.
He said a meeting was held with the Union Minster for Petroleum & Natural Gas (MoPNG), Hardeep Singh Puri, in New Delhi on 11 October 2021. The Union Minister had suggested the Government of Nagaland and the Ministry of Petroleum & Natural Gas to come up with a Bipartite MOU to facilitate resumption of exploration and production of petroleum and natural gas in the state pending resolution of the matter in the High Court.
Minister of Soil and Water Conservation & Geology and Mining V Kashiho Sangtam presenting a brief status of petroleum & natural gas affairs in Nagaland.
Sangtam said the draft Bipartite MoU is an alternative arrangement outside the court neither infringing Article 371 (A) nor within the purview of the P&NG Rules, 1959.
He informed that the MoPNG has shared the Draft Bipartite MoU between MoPNG, GOI and Government of Nagaland. Accordingly, the state government has incorporated the suggestions and views of the government in the Draft Bipartite MoU which has been sent to the Accountant General (AG) Nagaland. Reply is awaited, Sangtam said.
