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State-owned upstream company Oil India Ltd is looking to start exploration activities in Nagaland and is engaged in discussions with the state and central government for the same, a top official of the company told FE. Additionally, the state-run company is hopeful of starting oil production from its block in Gabon in central Africa in the next financial year.
“We have a total of 30 blocks under the OALP (Open Acreage Licensing Policy). We have already drilled all wells under the awarded OALP blocks, except in Nagaland. We are pursuing the ministry and they have set up a high power committee involving OIL, ONGC, government officials, to discuss the issue with the Government of Nagaland and resume exploration,” the official said.
The company has a 3000 sq. km area in its posesssion in Nagaland. The governments of Assam and Nagaland have over the time held discussions on settlement of border disputes and agreeing in-principle on exploration of oil in the disputed areas for economic benefit. However, no progress has been made so far. Last year, the Nagaland government had said that exploration in the disputed areas with Assam will not start before consulting all stakeholders and tribal bodies of the area.
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The company is currently carrying out exploration activities in 27 OALP blocks in the states of Assam, Arunachal Pradesh, Tripura, Nagaland, Odisha, Rajasthan and offshore areas in Andaman and Kerala-Konkan out of the 30 OALP blocks awarded under different OALP bid rounds. It has a valid petroleum exploration license (PEL) for 29 OALP blocks.
In respect of the AA-ONHP-2018/2 OALP block on the Assam Arakan basin, the company is yet to receive PEL from concerned governments, the company said in its annual report for 2023-24. “OIL’s application for PEL was handed over to the Ministry, Geology & Mining, Nagaland on March 20, 2020,” it said.
Oil and Natural Gas Corp also had to stop its exploration and production activities in Nagaland in 1994 after the National Socialist Council of Nagaland asked it to quit the state.
“In the remaining 27 blocks, we have completed a seismic survey and now we are planning to start drilling. Some of the blocks we have already started drilling. In Rajasthan we have drilled six wells. In Orissa too, we have drilled three wells and another one in Assam,” said the source.
As for ventures abroad, OIL has already drilled three wells in the block and is looking to drill two more uprising wells, according to the official. Oil India and Indian Oil Corp have a 50% stake each in the Shakthi-II block in Gabon. “In Gabon we have drilled three wells and there has been a discovery. So that is why we are drilling two more uprising wells.”
An oil discovery was made in well Lassa-1 in the old PSC (production sharing contract). Two appraisal wells (Lassa-2 & 3) were drilled as per the minimum work programme of Phase-1 of new PSC, said the company in its annual report FY24. The consortium carried out 1213.04 LKM (line kilometer) of new 2D seismic data acquisition, processing and interpretation to assess the prospectivity in the remaining part of the block.
“Based on the integrated interpretation and prospect evaluations, the consortium has entered into Phase-II exploration period in the block which was extended upto April 15, 2025 due to statutory delays and Covid-19 pandemic,” it had said.
The company’s overseas exploration and production (E&P) portfolio is spread over seven countries including Russia, Venezuela, Mozambique, Nigeria, Bangladesh, Libya and Gabon.
The company’s plans of ramping up its domestic and overseas production capacities comes amid the government’s target of improving the country’s supplies while reducing the dependency on imports. India imports around 85% of its oil requirement.