Nagaland Pushes for State-Specific Oil Policy to Unlock Wealth
First Published: 7th March, 2025 17:23 IST
Rio pointed out that the Nagaland Petroleum and Natural Gas Regulations, 2012, provided a legal framework for exploration.
The Nagaland Legislative Assembly on Friday held an extensive discussion on the urgent need for petroleum exploration and extraction in the state. Initiated by MLA Jwenga Seb, the discussion focused on the economic potential of the sector and the need for a state-specific policy to unlock Nagaland’s oil and gas reserves.
Chief Minister Neiphiu Rio, in his concluding remarks, strongly advocated for resuming petroleum exploration and extraction, asserting that it would significantly improve the state’s financial health.
“Nagaland is rich in resources, yet its people remain poor. We must find ways to explore and extract petroleum oil to benefit our citizens,” Rio stated.
He said that Nagaland possesses substantial oil reserves, with the first discovery made in Wokha district’s Changpang in 1973. Production commenced in 1983 but was halted in 1994 due to non-payment of royalties and unauthorised extraction.
Rio pointed out that the Nagaland Petroleum and Natural Gas Regulations, 2012, provided a legal framework for exploration. Under these regulations, the state granted rights to Metropolitan Oil and Gas Private Limited in Wokha district. However, legal hurdles have stalled further progress. The Chief Minister acknowledged an ongoing case in the Gauhati High Court regarding petroleum exploration in the state.
Despite the legal complexities, Rio reaffirmed that the state government is actively working with the Ministry of Petroleum and Natural Gas to resolve the deadlock. He revealed that discussions with central officials have led to a proposal for an interim arrangement that would allow exploration to resume and establish a refinery within the state.
Highlighting the need for a state-specific policy, Rio stressed the importance of defining smaller exploration blocks and a revenue-sharing mechanism to ensure the benefits reach the people of Nagaland. He clarified that these measures would not interfere with the ongoing legal case but would pave the way for sustainable oil and gas extraction.
With confidence in collective efforts, Rio called on all stakeholders to work together to harness the state’s petroleum potential, ensuring economic growth and prosperity for Nagaland’s citizens.
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