Hardeep Singh Puri Announces Resumption of Oil and Gas Production in Nagaland After 31 Years

In a major boost to India’s energy security and domestic hydrocarbon exploration efforts, Nagaland is set to resume oil and gas production after a gap of 31 years following the signing of a historic tripartite Memorandum of Understanding (MoU) among the Ministry of Petroleum & Natural Gas, the Government of Nagaland and the Government of Assam.

The agreement, signed in the presence of Union Home Minister Amit Shah, marks a significant milestone in India’s quest to enhance domestic exploration and production (E&P) of hydrocarbons under the leadership of Prime Minister Narendra Modi.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri described the development as a “giant leap” for India’s energy sector, noting that the North East region, which gave birth to India’s petroleum industry, is now poised to play a pivotal role in the country’s next phase of energy growth.

The MoU paves the way for fresh wildcat exploration in a new basin and establishes a framework for cooperation among the concerned governments, providing greater certainty to investors and facilitating long-term investment decisions.

The North East holds immense hydrocarbon potential. Assam alone accounts for nearly 22 percent of India’s crude oil reserves and around 15 percent of the country’s natural gas reserves. Nagaland, meanwhile, possesses significant untapped hydrocarbon resources in the Naga-Schuppen Belt of the Assam-Arakan Basin, an area known for natural hydrocarbon occurrences and substantial exploration prospects.

According to the Petroleum Minister, the agreement will facilitate operational continuity, improve regulatory coordination and create favourable conditions for sustained exploration and production activities across the region.

Puri also thanked Nagaland Chief Minister Neiphiu Rio and Assam Chief Minister Himanta Biswa Sarma for working together to resolve longstanding issues and create a roadmap for the region’s development.

The resumption of oil and gas operations is expected to generate substantial direct and indirect employment opportunities, encourage local entrepreneurship, strengthen infrastructure development and create new avenues for contractors, service providers and small businesses. The initiative is also expected to contribute significantly to the economic growth of surrounding communities and the overall development of the North Eastern Region.

Industry observers view the agreement as a crucial step towards increasing India’s domestic hydrocarbon production and reducing dependence on energy imports while unlocking the vast resource potential of the North East.