Nagaland’s Schuppen belt identified as top hydrocarbon prospect in Northeast

August 31, 2024 10 Views No Comment

Morung Express News
Dimapur | August 31

As discussions on oil exploration intensify, the Schuppen belt of Nagaland, extending into the Assam-Nagaland region, has been identified as the most promising area for hydrocarbon resources, according to officials from Oil and Natural Gas Corporation Limited (ONGC).

PK Mathuria, Group General Manager for the Northeast region, and RP Jakhmola, Chief Manager at ONGC, shared these insights during the 44th State Geological Programming Board (SGPB) meeting at the State Directorate of Geology and Mining in Dimapur on August 30.

The ONGC team from Jorhat was invited to present on the “Activities of ONGC in NE India and Prospects of Oil and Gas in the State.” The presentation highlighted the potential benefits for Nagaland if oil and gas exploration were to resume under current market conditions.

They mentioned that the State has the potential to benefit immensely from restarting oil and gas exploration given the current market conditions.

Previously, ONGC was awarded by the Government of India for the exploration and exploitation of crude oil in Nagaland’s Changpang Oil Block, covering an approximate area of 12 square kilometers in 1973.

At latest session of the 14th Nagaland Legislative Assembly (NLA), MLA Y Mhonbemo Humtsoe informed that ONGC drilled a total of 31 oil wells in the Changpang Oil Block. Of these, 21 wells produced high-quality crude oil, while 2 wells produced gas. From 1980 to 1994, ONGC’s cumulative crude oil production from these fields reached 1.036 million metric tonnes (MMTs).

However, in May 1994, operations in the Changpang-Old Tssori Block were abruptly halted due to pressure from student communities and mass-based social organizations, forcing both the Nagaland government and ONGC to cease activities.

Mathuria stated that during this period, the company had earmarked 36 sites for exploration out of which 25 were for oil and gas. For the company to restart oil exploration again in the State, he viewed that security concern was among the most important aspect which needed to be guaranteed first. Besides the challenge of obtaining forest clearance in certain areas as well, he said. “Our exploration is a 24 hour, round the clock job, the security is the main concern,” he commented.

In terms of the benefits which Nagaland can obtain, the official estimated that about 14-16% of royalties will be paid to the State Government given all things considered.

The other benefits that could be availed were building of public facilities, schools and providing employment opportunities for the locals under the company’s Corporate Social Responsibility (CSR).

For all these to transpire, the ONGC officials stressed the need for cooperation and support from the citizens.

As per their estimates, they purported that the State now only has a limited time frame before market demands shift toward renewable energy in the foreseeable future. “What exists of the present value of oil will diminish over the next ten years,” Mathuria said. Nevertheless demand for oil and gas will continue to exist for about 40 years or so.

During the programme, Dr Kenyelo Rengma, Additional Director, DGM also supplanted this point by pointing out that Nagaland has a period of about 35-40 years in which to utilize the available crude oil estimated to be about 554 million tonnes in reserve. “Petroleum and natural gas exploration, and development in Nagaland is being regulated under the Nagaland petroleum and natural gas regulations and rules 2012,” he highlighted.

Other speakers included Commissioner and Secretary, Geology and Mining department, John Kevi Angami who delivered the keynote address.

Meanwhile, a presentation on ‘Magnetite and Associated critical metals in Naga Ophiolite belt,’ was given by Professor, S K Singh, Department of Geology, Nagaland University.

This was followed later by a technical session in the afternoon.