New Delhi, June 12 (IANS) The Ministry of Petroleum and Natural Gas on Friday signed a tripartite Memorandum of Understanding with the state governments of Nagaland and Assam to increase domestic exploration and production of oil and gas.

Petroleum Minister Hardeep Singh Puri said that since Assam alone accounts for nearly 22 per cent of India’s crude oil reserves and around 15 per cent of the country’s natural gas reserves, while Nagaland possesses significant hydrocarbon potential in the Naga-Schuppen Belt of the Assam-Arakan Basin, resources where hydrocarbons flow naturally and those which have huge untapped resources, the outlook for E&P (exploration and production) activities in the North East is extremely promising.

By creating a framework for cooperation between the concerned Governments, the MoU signed in the presence of Home Minister Amit Shah, provides certainty to investors, facilitates operational continuity, enables regulatory coordination and creates conditions necessary for long-term investment decisions, the minister said.

“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,” Puri remarked.

“With the signing of a historic tripartite Memorandum of Understanding between Ministry of Petroleum and Natural Gas, Nagaland and Assam, India’s quest towards increasing domestic exploration and production of hydrocarbons under the visionary leadership of Prime Minister Narendra Modi takes a giant leap as a new basin opens up for fresh wildcat exploration,” the minister further stated.

He also thanked Nagaland Chief Minister Neiphiu Rio and Assam Chief Minister Himanta Biswa for “rising above differences” to chart the way forward for the region and the country.

The resumption of mineral oil operations will generate direct and indirect employment, stimulate local entrepreneurship, strengthen physical infrastructure, create opportunities for contractors, service providers and small businesses, and contribute significantly to the economic development of surrounding communities and the entire North East Region, the minister added.

–IANS

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