Centre, Assam and Nagaland Ink Historic MoU to End 30-Year Deadlock on Border Oil, Gas Exploration

Oil exploration along the Assam-Nagaland border

Staff Reporter

GUWAHATI: The governments of Assam, Nagaland and the Government of India today signed a Memorandum of Understanding (MoU) to unlock the three-decade-old deadlock regarding oil and natural gas explorations in an area of about 1,000 sq km along the Assam-Nagaland border.

The MoU was signed in the presence of Union Home Minister Amit Shah, Union Petroleum Minister Hardeep Singh Puri, Assam Chief Minister Dr Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio.

Amit Shah said that Assam and Nagaland have come forward for the greater interests of the nation. “The two states had their issues, but in the interest of the country’s oil explorations, they have set aside their differences. I feel this MoU will add fresh momentum to the economic development of both the states. In the event of an oil crisis in the future, the oil we’re going to explore from Nagaland will give succour to the nation,” he said.

Shah further said, “The Prime Minister always focuses on the Northeast, leading to all-round development in the region, besides peace. The peaceful situation in the region has accelerated private investment. I hope, by next year, the AFSPA (Armed Forces Special Powers Act), 1958, will be withdrawn from the region.”

Chief Minister Dr Himanta Biswa Sarma said, “The MoU marks a decisive breakthrough in unlocking the untapped potential of the region. The identified area is expected to offer significant opportunities for hydrocarbon exploration and mineral extraction, contributing to the country’s long-term energy requirements. This will accelerate investment in the energy sector and create new economic opportunities across the Northeast.”

Oil and natural gas exploration in Nagaland came to a complete stop in the mid-1990s due to jurisdictional disputes, local protests, and legal complexities surrounding the state’s special status. In April 2023, both states agreed in principle to explore oil with an out-of-court settlement and facilitated the resumption of hydrocarbon extraction in disputed areas, with the proposal of equally sharing revenues.

According to the MoU, there will be joint exploration and production of oil and natural gas in the border areas. Exploration activities will include participation from PSUs and private energy companies. There will be a coordinated law-and-order management system to prevent local conflicts during exploration activities.

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