Kohima: The Nagaland Assembly has strongly advocated for the exploration and extraction of the state’s petroleum and natural gas resources, emphasizing its potential to drive economic growth and create employment opportunities. The discussion, raised as a matter of public importance by JD(U) MLA Jwenga Seb, received support from LJP(RV) MLA Dr. Sukhato A. Sema and RPI(A) MLA Y. Lima Onen Chang, highlighting the pressing need to tap into Nagaland’s rich energy reserves.
Seb underscored the state’s dependence on external energy sources, noting that nearly 90 percent of Nagaland’s energy needs are met by other states, hampering industrial growth and infrastructure development. He pointed out that petroleum consumption in the state rose from 154,000 metric tonnes in 2019 to 172,000 metric tonnes in 2020, reinforcing the urgency of local resource utilization. With global energy policies shifting towards a “Net Zero” future by 2050, he urged the state to act swiftly in exploring its hydrocarbon potential before technological advancements render fossil fuels obsolete.
MLAs Sema and Chang echoed Seb’s concerns, warning that failure to capitalize on existing oil reserves could diminish the state’s economic relevance. They argued that delaying exploration might result in lost opportunities as energy markets evolve and oil fields potentially dry up. Supporting the initiative, BJP Minister Jacob Zhimomi suggested prioritizing exploration in non-disputed areas, particularly within the 83,000 hectares of Nagaland’s territory, before resolving border-related challenges with Assam through legal consultations.
NPF MLA Achumbemo Kikon highlighted the readiness of the Changpang oil field in Wokha district for production. He also noted that landowners in Bhandari had expressed willingness to grant No Objection Certificates (NOCs) for both exploration and the establishment of an oil refinery, which could provide significant employment opportunities for the state’s youth.
Responding to the discussion, Chief Minister Neiphiu Rio acknowledged Nagaland’s untapped oil reserves, tracing back to the discovery of oil in Changpang by ONGC in 1973 and subsequent production from 1983 until operations ceased in 1994 due to royalty disputes and over-extraction concerns. He detailed the state’s efforts to regulate and revive the sector, including the establishment of the Nagaland Petroleum and Natural Gas Regulations and Rules in 2012, followed by an expression of interest for exploration in 11 designated zones.
Rio also addressed legal hurdles, revealing that while Metropolitan Oil and Gas Private Ltd was granted a permit in Wokha district, litigation issues led to delays. The Gauhati High Court is currently handling a suo motu case related to oil extraction, further complicating the process. However, he assured the House that since 2018, the state government has been in active discussions with the Ministry of Petroleum and Natural Gas (MoPNG) to resolve these issues and resume exploration in line with Nagaland’s constitutional provisions.
Efforts to break the deadlock have included high-level meetings with Union Minister Hardeep Singh Puri in September 2021 and 2022. The discussions explored a state-specific policy, proposing smaller exploration acreages to attract more bidders and extending revenue-sharing benefits to the people of Nagaland. A tripartite Memorandum of Understanding (MoU) involving the Centre and the governments of Nagaland and Assam has also been proposed to facilitate the resumption of exploration activities, particularly in the Disputed Area Belt (DAB).
While legal proceedings remain ongoing, Rio expressed optimism about the future of oil and gas exploration in Nagaland, emphasizing its transformative potential for the state’s economic growth. The government remains committed to pushing forward with exploration and extraction, which is expected to significantly boost Nagaland’s revenue and accelerate its overall development trajectory.