On Friday, the Ministry of Petroleum & Natural Gas signed a Memorandum of Understanding (MoU) with Assam and Nagaland to enhance domestic oil and gas exploration. This agreement aims to revive production in Nagaland after a gap of 31 years, tapping into the Northeast's significant hydrocarbon potential, ensuring investment certainty, and generating employment opportunities, as stated by Union Minister Hardeep Singh Puri.
Historic Tripartite Agreement
Puri shared the development on social media, highlighting that the tripartite MoU between the Ministry, Nagaland, and Assam marks a major step towards increasing domestic hydrocarbon exploration and production under Prime Minister Narendra Modi's leadership. He described it as a giant leap that opens a new basin for wildcat exploration.
Reviving Nagaland's Oil Production
The Minister noted that Northeast India is the birthplace of the country's petroleum industry. He emphasized that Nagaland will resume oil and gas production after 31 years, stating, "The North East gave birth to India's petroleum industry; today, it stands ready to power the next chapter of India's energy journey."
Rich Hydrocarbon Reserves in the Region
Assam holds approximately 22% of India's crude oil reserves and 15% of its natural gas reserves. Nagaland's Naga-Schuppen Belt in the Assam-Arakan Basin is rich in untapped hydrocarbons, with both conventional and unconventional resources. This makes the outlook for exploration and production activities in the Northeast extremely promising.
Economic and Employment Benefits
According to Puri, the MoU provides certainty to investors, facilitates operational continuity, and creates an environment conducive to long-term investment. The resumption of mineral oil operations is expected to generate direct and indirect employment, stimulate local entrepreneurship, strengthen physical infrastructure, and create opportunities for contractors, service providers, and small businesses. This will contribute significantly to the economic development of surrounding communities and the entire Northeast region.
