Jwenga Seb on Friday called for decisive action on petroleum exploration in the state, asserting that Nagaland must shed its economic dependency and harness the untapped hydrocarbon resources.
KOHIMA — Member
of Nagaland Legislative Assembly Jwenga Seb on Friday called for decisive
action on petroleum exploration in the state, asserting that Nagaland must shed
its economic dependency and harness the untapped hydrocarbon resources.
Initiating a discussion on ‘Exploration & Extraction of
Petroleum Oil in Nagaland’ on the fourth day of the sixth session of the 14th
Nagaland Legislative Assembly, Seb expressed concern over the lack of progress
despite multiple discussions on the subject.
Pointing out that Nagaland remains heavily dependent on
external sources for energy and economic sustenance, he said that the state,
though rich in natural resources, continues to rely on imports for almost 90%
of its energy needs. He highlighted that petroleum consumption in Nagaland
increased from 154 thousand metric tonnes in 2019 to 172 thousand metric tonnes
in 2020, underscoring the state’s growing dependency on external sources.
Stating that energy remains a critical driver of economic
progress, Seb said that Nagaland cannot achieve industrial growth, job
creation, or infrastructure development without a stable and sufficient energy
supply. He noted that Nagaland falls within the Naga-Schuppen Belt of the Assam-Arakan
Basin, which has an estimated 1,633 million metric tonnes of oil equivalent, of
which only 178 million metric tonnes have been discovered so far.
Questioning how much of the remaining 89% is located within
Nagaland, he said some estimates suggest the state has around 600 million
metric tonnes of hydrocarbon resources.
Drawing attention to the lack of systematic exploration, Seb
said that while ONGC conducted exploratory drilling and seismic surveys in
Wokha, Chumoukedima, and Dimapur districts in the 1970s, the rest of the state
remains largely unexplored.
Asserting that oil exploration is crucial for Nagaland’s
economic transformation, he said the state has substantial oil and natural gas
reserves, particularly in districts like Mon, Mokokchung, Wokha, Niuland,
Chumoukedima, and Peren. He added that tapping into these resources could bring
significant revenue to the state government, reducing its dependency on central
funds while creating employment opportunities in various sectors, including
drilling, logistics, engineering, and security.
He said establishing a refinery within Nagaland would
further boost employment and industrial infrastructure, adding that the
exploration process would lead to investment in roads, electricity, and
communication networks, benefiting the local population beyond the oil sector.
Emphasising that Nagaland currently depends on fuel imports, Seb said local oil
production could reduce costs and support industrialisation by ensuring a
stable energy supply for factories and businesses.
He pointed out that despite proven oil reserves, extraction
remains minimal due to legal and bureaucratic challenges. He stressed that the
state must act before global shifts toward renewable energy render these
resources obsolete. Stressing that proactive policies could attract investors
and position Nagaland as a contributor to national energy security, he said the
state must capitalise on its strategic advantage.
Touching upon the legal aspects of oil exploration, Seb said
Article 371(A) grants the Naga people special rights over their land and its
resources, making it their decision whether to remain economically dependent or
take proactive steps toward financial independence. While acknowledging
environmental concerns, he said oil exploration must be conducted responsibly
to prevent damage to forests, water sources, and biodiversity. He added that
community involvement is essential to ensure fair compensation and benefits for
local stakeholders, stating that if handled with proper policies, transparency,
and sustainability measures, oil exploration could be a game-changer for
Nagaland’s economy.
Seb called for immediate action, urging the state government
to issue Petroleum Exploration Licences (PEL) under a Revenue Sharing Contract
(RSC), allowing reputed oil companies to undertake detailed exploration
activities with clear work programmes and timelines. He said the exploration
phase alone, which could take between three to ten years, would generate annual
license fees, create employment opportunities for local youth, provide business
opportunities for vehicle and equipment hires, and bring rental income for
landowners.
Stating that past experiences with ONGC’s operations in
Changpang and other regions have demonstrated the feasibility of oil production
in Nagaland, Seb said a systematic, scientifically driven exploration programme
would help unlock untapped resources while fostering capacity building among
local workers. Urging the government to act without delay, he said Nagaland
stands at an economic crossroads and must choose the path of decisive action
over prolonged dependency and stagnation.
Legislator Y Limaonen Chang, while acknowledging the
privileges of Article 371(A) of the Indian Constitution, said people have
misconceived and misinterpreted it, making it a stumbling block rather than an
advantage. Highlighting technological advancements across the world, he
expressed concern that by the time Nagas agree to explore oil and other natural
resources, it might be too late if the oil fields dry up. He urged Naga
leaders, civil society organisations, and political groups to wake up from
their slumber and work with the government to initiate petroleum exploration.
Minister Jacob Zhimomi emphasised the need to firmly support
the state government’s decision while expressing concerns over revenue-sharing
agreements in the Disturbed Area Belt (DAB). He remarked that Nagas across the
border settle only with government-issued settlement orders and do not occupy
land illegally. He also criticised statements by an Assam minister alleging
that Nagaland had occupied land in Assam. Zhimomi suggested a phase-wise
approach to exploration while seeking legal consultation.
Legislator Achumbemo Kikon stated that the interpretation of
Article 371(A) remains a contentious issue. He maintained that the article is
the outcome of a political agreement and should not be debated in court, as its
intent would not be fulfilled. Highlighting that the issue of oil exploration
is currently before the Supreme Court, he revealed that the Chanpang and Tsory
Old landowners’ union issued a no-objection certificate last year, which was
submitted to the Chief Minister. He urged the state government to expedite the
pending matter in court.
Chief Minister Neiphiu Rio, in his concluding remarks,
provided an update on the state government’s efforts to resume petroleum
operations. He recalled that ONGC began exploration in Nagaland in the 1970s,
discovering oil in Changpang in 1973, with production starting in 1983.
However, oil production ceased in 1994 due to various
disputes, including non-payment of royalties and unauthorised extraction.
He highlighted that the Nagaland Petroleum and Natural Gas
Regulations and Rules were notified in 2012, leading to an invitation for
Expressions of Interest. He asserted that legal challenges stalled the process.
Since 2018, the state government has been in talks with the Ministry of
Petroleum and Natural Gas to resolve the deadlock. Meetings were held with
central and Assam government representatives to negotiate an interim
arrangement for revenue sharing while the Supreme Court case is pending.
Rio reiterated that opening up Nagaland for oil and gas
exploration would improve the state’s finances and emphasised the need for an
early resolution to unlock the state’s hydrocarbon potential.
