Centre, Assam, and Nagaland Sign Historic MoU for Oil and Gas Exploration

A tripartite Memorandum of Understanding (MoU) was signed between the Centre and the Governments of Assam and Nagaland for the exploration and production of crude oil and natural gas along the Assam-Nagaland border. The MoU was signed in New Delhi in the presence of Union Home Minister Amit Shah, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio. Speaking on the occasion, Mr. Shah termed it a historic moment as this initiative will enhance the prospects of oil and natural gas exploration and also opens up possibilities for mineral mining as well. He said, the decision reflects the spirit of Nation First and cooperative federalism. He noted that both states agreed to move forward in the national interest, ensuring that oil exploration is not hindered as it is a national resource. The Home Minister said, the agreement will significantly boost oil and gas exploration in the region. He added that oil extraction capacity in the region which is currently ranging from one thousand to one thousand five hundred barrels per day is expected to go up to more than tenfold through this MoU. Mr Shah informed that a single field alone holds the potential for recoveries exceeding 15 thousand crore rupees.Mr. Shah said, the agreement will not only strengthen energy security but also reduce India’s dependence on foreign imports. He expressed confidence that the development of natural resources in the Northeast will accelerate economic growth in both Assam and Nagaland. The Home Minister also credited Prime Minister Narendra Modi for prioritizing the development of the Northeast. He said, multiple peace agreements in recent years have led to an 80 percent reduction in violence and improved conditions for investment and infrastructure growth.