Oil exploration in lower Assam: State Government signs exploration contracts with OIL

STAFF REPORTER

GUWAHATI: For the first time in Assam's oil history, crude oil and natural gas exploration will begin on the northern bank of the Brahmaputra in lower Assam.

The Assam Government signed PEL (Petroleum Exploration Licence) deeds for two open Acreage Licensing Policy (OALP) blocks with Oil India Limited (OIL) on Thursday in the conference hall of the Directorate of Geology and Mining, Guwahati, in the presence of top OIL and State Government officials.

Ananda Kumar Das, Joint Secretary and Director (Geology and Mining), Government of Assam, and JPP Das, Executive Director (Frontier Basin), OIL, signed the deeds.

While one of the blocks (Pathsala Block) measuring 2445.30 sq km falls in the districts of Barpeta, Nalbari, Baksa, and Kamrup, the other block (Mangaldai Block) measuring 1840.87 sq km is spread out in Udalguri, Kamrup, and Darrang districts.

If the area proves promising, it will bring a new dimension to the state. OIL plans to invest approximately Rs 12 crore in these projects. The oil giant has already started a seismic survey.

According to sources, initial work on the seismic survey began in Bhabanipur yesterday. OIL has identified the locations where the seismic survey will continue until the onset of the monsoon.

The State government, led by Chief Minister Himanta Biswa Sarma, laid stress on investment in the oil and gas sector. To harness the benefits of certain investments in the oil and gas sector, the Chief Minister announced in December 2021 that it would set up an investment holding company to pump money into oil and gas entities and manage those stakes. The State government has already raised its stake in the NRL to 26 percent. According to the Chief Minister, the State Government has widened its scope for revenue earnings by investing in various fields. The Chief Minister said, "The more exploration OIL conducts in Assam, the PSU will make more investment, and this will contribute to the economic development in the state."

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