Centre Signs MoU With Assam, Nagaland To Boost Hydrocarbon Exploration

The Ministry of Petroleum and Natural Gas has entered into a tripartite Memorandum of Understanding (MoU) with the governments of Assam and Nagaland to enhance domestic exploration and production of hydrocarbons in the northeast.

"The North East gave birth to India's petroleum industry; today, it stands ready to power the next chapter of India's energy journey as Nagaland will produce oil and gas again after 31 years!," Union Minister Hardeep Singh Puri said in a post on X.

Puri highlighted the region’s significant potential, noting that Assam holds nearly 22% of India’s crude oil reserves and around 15% of its natural gas reserves, while Nagaland has substantial untapped resources in the Naga-Schuppen Belt of the Assam-Arakan Basin.

Puri emphasized that the MoU provides a framework for cooperation, offering certainty to investors, facilitating operational continuity, enabling regulatory coordination, and creating conditions for long-term investments.

"By creating a framework for cooperation between the concerned Governments, this MoU signed in the presence of HM Sh @AmitShah Ji, provides certainty to investors, facilitates operational continuity, enables regulatory coordination and creates conditions necessary for long-term investment decisions."

The resumption of mineral oil operations is expected to generate both direct and indirect employment, support local entrepreneurship, enhance infrastructure, and benefit contractors, service providers, and small businesses, contributing to the economic development of surrounding communities and the broader northeast region.

The agreement specifically targets exploration in the disputed area belt (DAB) along the Assam-Nagaland border, where activities had been stalled for over three decades due to jurisdictional disputes.

Union Home Minister Amit Shah noted that the MoU could increase current extraction capacity from 1,000–1,500 barrels per day to more than tenfold.

The framework ensures operational continuity, personnel and asset safety, and effective coordination among stakeholders.

It is expected to support upstream petroleum activities, attract investment, and strengthen India’s energy security.