Nagaland government pushes for oil exploration and extraction amid legal hurdles

HORNBILL TV

Chief Minister Neiphiu Rio reiterated his government’s commitment to resuming petroleum exploration and extraction in Nagaland, emphasizing the need to unlock the state’s vast oil reserves.

Kohima, Nagaland, March 7 (HBTV): Nagaland Chief Minister Neiphiu Rio today reiterated his government’s commitment to resuming petroleum exploration and extraction in Nagaland, emphasizing the need to unlock the state’s vast oil reserves while addressing legal and administrative challenges.

 Speaking in the ongoing Nagaland Legislative Assembly session, he outlined the state’s efforts to navigate the impasse and move towards sustainable oil production.

Rio recalled that oil exploration in Nagaland began in the 1970s, with production at Changpang starting in 1983 before being halted in 1994 due to royalty disputes and regulatory issues. Since then, the government has worked to revive operations, including the introduction of the Nagaland Petroleum and Natural Gas Regulations and Rules in 2012.

Despite legal complications, including a pending suo moto Public Interest Litigation in the Gauhati High Court, Rio stated that his government has been actively engaging with the Ministry of Petroleum and Natural Gas to find solutions.   

“We have been pursuing this matter since August 2018 to resolve the deadlock and resume operations in accordance with Nagaland’s special constitutional provisions,” he said.

The chief minister highlighted key discussions held with Union Minister Hardeep Singh Puri and other stakeholders. Proposals under consideration include granting permission to ONGC to resume operations, dividing exploration areas into smaller blocks to attract more bidders, and ensuring revenue-sharing benefits for the people of Nagaland. The establishment of a refinery in the state was also raised as a long-term goal.

As part of interim measures, the state government is working on a tripartite Memorandum of Understanding with the Centre and Assam to facilitate exploration while awaiting the final court ruling. Rio emphasized the need for an equitable royalty-sharing mechanism across all oil-rich areas in the Disputed Area Belt.

Rio underscored the economic potential of petroleum extraction, stating, “Nagaland is rich, but its people remain poor. We must find ways to utilize our resources for the benefit of our state.”