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Nagaland Assembly stresses on oil exploration to boost economy

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..... Nagaland Assembly stresses on oil exploration to boost economy
PTI News
Dated:- 7-3-2025
PTI
Kohima, Mar 7 (PTI) The Nagaland Assembly on Friday emphasised the need for exploration and extraction of petroleum and natural gas resources in the state to boost the economy and generate jobs. The issue was raised during a discussion on matters of public importance by JD(U) MLA Jwenga Seb, w .....

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..... ith support from LJP(RV) MLA Dr Sukhato A. Sema and RPI(A) MLA Y. Lima Onen Chang. Initiating the discussion, Seb stressed that the state’s future economic self-reliance lies in tapping into its natural resources. He highlighted that Nagaland, rich in natural resources, has long been dependent on external sources, which is reflected in its modest GDP, limited local industries, and reliance on ou .....

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..... tside states for energy. "Around 90 per cent of Nagaland's energy needs are met by other states, hindering its economic growth," he pointed out. He emphasised that without a stable energy supply, efforts toward job creation, industrial growth and infrastructure development remain unfulfilled. The state's consumption of petroleum products rose from 154,000 metric tonnes (TMT) in 2019 to 172 TMT .....

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..... in 2020, underlining its heavy dependence on external sources, he said. Seb also noted that with global shifts in energy policies toward a "Net Zero" future by 2050, Nagaland must seize the opportunity to explore its hydrocarbon resources. Supporting Seb, MLAs Sema and Chang warned that without tapping into local oil deposits, the state risks losing its relevance as newer technologies, such as e .....

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..... lectric vehicles, continue to emerge. The oil fields could also eventually dry up if not utilised soon, they said. BJP Minister Jacob Zhimomi suggested that exploration should begin in non-disputed areas, especially on the more than 83,000 hectares within Nagaland, before addressing the disputed areas with Assam after legal consultations. NPF MLA Achumbemo Kikon highlighted that the Changpang oi .....

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..... l field in Wokha district is ready for the production stage. He also mentioned that the landowners in his home constituency, Bhandari, have agreed to provide a No Objection Certificate (NOC) for exploration and also setting up of oil refinery which would support creating jobs for the state's youth. In response, Chief Minister Neiphiu Rio acknowledged Nagaland's rich oil reserves. He noted that o .....

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..... il exploration by ONGC began in 1973 with a discovery in Changpang, and production started in 1983. However, production was halted in 1994 due to issues like non-payment of royalty and exceeding the state's permitted production levels. Rio explained that the Nagaland Petroleum and Natural Gas Regulations and Rules were established in 2012, and an expression of interest was called in December of t .....

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..... he same year for exploration in 11 zones. Metropolitan Oil and Gas Private Ltd was granted the permit in Wokha district, though a Public Interest Litigation (PIL) was filed and subsequently withdrawn, with the Gauhati High Court taking up up a suo motu case and it is still pending. The CM added that the state government has been actively engaging with the Ministry of Petroleum and Natural Gas (M .....

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..... oPNG) since 2018 to resolve the deadlock and resume exploration activities in line with constitutional provisions for Nagaland. A meeting with the Union Minister for Petroleum and Natural Gas was held in September 2021, discussing exploration and resuming operations within the state, especially in the DAB (Disputed Area Belt). Rio mentioned that a tripartite MoU involving the Centre and the gove .....

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..... rnments of Nagaland and Assam has been proposed for resumption of exploration activities. Rio said that in September 2022, he met Union Minister Hardeep Singh Puri to discuss a state-specific policy, suggesting smaller exploration acreages to attract more bidders and extending revenue shares to the people of Nagaland. Additionally, the establishment of a refinery was reiterated to benefit local e .....

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..... mployment. While stressing that these measures would not affect the ongoing legal cases, Rio expressed optimism that the state could soon move forward with exploration and extraction, which would boost Nagaland’s finances and overall development. PTI NBS NBS MNB
News - Press release - PIB .....

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