RPP raises issues of concern regarding exploration of oil

November 5, 2022 48 Views No Comment

DIMAPUR, NOVEMBER 5 (MExN): The Rising People’s Party (RPP) has raised issues of concern regarding exploration of petroleum and natural gas in Nagaland.

While maintaining that the party is not against such exercise, it however pointed to two particular issues— exploration and revenue sharing in the DAB; and exploration and extraction within Nagaland proper.

“As per news reports, Nagaland has received an indication from the Assam government to equally divide the proceedings of petroleum exploration and extraction between the two states along a few sectors of the Disputed Area Belt (DAB),” the RPP noted. It said that the State Government is obligated to be transparent and accountable on this issue.

The RPP questioned how much is Assam government’s revenue from oil extraction in sector A, B, C, D, E and F falling along DAB till date.

“Since Assam has been extracting petroleum along the DAB for several decades will Nagaland get the accumulated share of revenue due to it?” it asked.

Further, the party posed if the proposed MoU is on 50: 50 share basis and will Nagaland still go ahead with the MoU if Assam insists that the sharing formula is to be restricted to sectors A, B, and C only.

With regard to exploration within proper Nagaland oil and mineral resources falls under the ambit of Article 371 A, the RPP observed. However, it pointed out that as per the Nagaland Petroleum & Natural Gas Regulations and Rules 2012, and expressed bewilderment at the “myopic conclusion in fixing the state’s share of profit at a meager 16% minimum for petroleum and 12% minimum for natural gas.”

The RPP said that the state’s share in this case should not be less than 50%. If the state government goes ahead with the 16% profit formula, then the RPP can only conclude that the present dispensation has an ulterior motive, it added.
Until this percentage is rectified, the government of the day should not hastily sign any memorandums and agreements with any entity, it said.

Source: https://morungexpress.com/rpp-raises-issues-of-concern-regarding-exploration-of-oil