Oil India-ONGC compete for E&P in Nagaland
As Nagaland grows more open to E&P, Oil India and ONGC are vying to establish a foothold in the volatile oil-rich northeast Indian state.
On February 27 (2024), chief minister Neiphiu Rio signalled that he might at last consider progress on E&P - long stalled because of a court case filed by the Lotha Hoho tribe in the Guwahati High Court in 2015 over who has rights to the state's oil and gas resources. "On oil and gas, he said exploration will take four to five years at a huge cost," said the government public information newsletter Naga News.
"However, he (Rio) also mentioned that the government will assist once exploration is started." On January 12 (2024), Oil India chairman Ranjit Rath wrote to Rio seeking the appointment of a high-level Oil India delegate to Rio's office to facilitate Nagaland exploration efforts.
Rath's focus is on the 2527-sq km OALP-3 block AA-ONHP-2018/2. "For this block, located in Nagaland, the PEL is still awaited from the state government," writes Rath.
"Oil India signed the RSC in July 2019." A senior state government official wonders why ONGC has not been making similar overtures since the former basin manager Sushma Rawat, now ONGC's exploration director, showed interest in 2022.
"ONGC proposed friendship but did not take it forward," he says. Others believe ONGC is working behind the scenes to safeguard its old PELs.
On January 17 (2024), Assam & Assam Arakan Basin (AAAB) manager Vishal Shastri wrote to the Nagaland government asking it to renew three PELs: the 619.53-sq km Baghty Bhandari and 316.79-sq km Singphan PELs, both in Wokha district, and the 646.79-sq km Dimapur PEL, in Dimapur district. In June 2023, oil ministry officials extended approvals from the previous validity end date of April 27 (2010) to December 31 (2025).
"We wish to bring to your kind notice that we are left with a very limited time window of approximately two years to fulfil our work programme," writes Shastri. "We therefore request you to consider granting the PEL as soon as possible."
Shastri wants a virtual meeting with Nagaland authorities to expedite the renewal beyond December 2025.