State govt hopeful of oil exploration from 2012

Morung Express News
Dimapur | March 28

The “draft modalities” for exploration and extraction of petroleum in Nagaland state is expected to be out by fist week of May, 2012. “We have recently appointed economic consultants based in Delhi to work out the modalities on oil exploration within 45 days,” Planning Minister, TR Zeliang, who is also convenor of the Nagaland Cabinet Sub-committee on Petroleum & Natural Gas, said on Wednesday. 

Zeliang said after the consultants submit the draft modalities, the cabinet sub-committee would look into in and if satisfied, take it to the State cabinet for final approval.  “But before that we will have public consultation with tribal hohos, frontal organizations and students’ bodies for their views and suggestions,” he said.   

The sub-committee convenor expressed optimism that if there are no hurdles, then oil exploration could commence this year. The convenor also said that the initial draft pertaining to legal implications - central acts and state’s own rules and Article 371 (A) -) by legal experts had been completed. 

On the deadline set by the Kyong Students’ Union to the cabinet sub-committee to finalize the “modalities” for oil exploration in Changpang oil field, Wokha district, on or before March 29, Zeliang said the sub-committee has to proceed cautiously taking into consideration the interests and rights of the Naga people. 

It may be mentioned the State Assembly on June 26, 2011, passed a resolution that in respect of “ownership and transfer of land and its resources, including mineral oil”, no act of parliament would apply within the state of Nagaland and that Nagaland would make appropriate rules in this regard to be enforced within the state. 

Zeliang also said that the Naga Students’ Federation (NSF) in a meeting with the cabinet sub-committee last month, apprised on the health hazard posed by oil spill in Changpang. Accordingly, the government sanctioned Rs. 64 lakhs for cleaning up of the area, approach road to the oilfield, security fence and opening a dispensary. 

Asked on the salient features of the modalities, the cabinet sub-committee convenor said he cannot comment at present since the consultants with networks in 40-50 countries would work on the modalities.  According to sources, some suggestions on modalities included any oil company that gets licence for oil extraction would have to set up oil refinery within two years, 30-40% job reservation for local populace, setting up infrastructure like schools, hospital and other public amenities. Though the “royalty” of the state government is not known, sources said that the landowners are demanding 25% profit of the total oil production. 

The oil reserve in Changpang area alone is estimated at 20 million metric tonnes. Earlier, ONGC which operated for some years in Changpang left in 1994 after facing problems from various quarters.