After living in denial for more than 50 years that Nagas desired political solution before exploitation of oil, gas, coal and other minerals, legislators of Nagaland have at last come out to back revenue earning activities otherwise, the state will continue to suffer in poverty despite being among the resource-rich states in the region.
The negative sentiment on oil exploration and extraction in Nagaland arose primarily due to the Naga political issue where the groups described all resources as “national property” contrary to Article 371A which vested the rights to the landowners.
Also successive state governments were unwilling to confront the narrative. However the dubious manner in which oil had been over extracted by Oil and Natural Gas Corporation (ONGC) proved a major factor. As per estimates ONGC had extracted around 5000 barrels of crude oil for trial basis from the late 80s till 1994.
Nagaland got a mere Rs.33 crore as revenue without proper verification of how much was extracted. The problem with the ONGC operation was that there was practically very little supervision and monitoring from Nagaland.
As per official sources, Nagaland has an estimated 600 million metric tons of crude oil reserves besides gas spread across districts such as -Wokha, Mokokchung, Peren, Chümoukedima, Niuland, Kohima, etc.
Nagaland also has substantial deposits of high quality coal estimated at 492.68 million tonnes, with major deposits in Mon, Mokokchung, Wokha, and Tuensang districts, primarily sub-bituminous to lignite in nature. Nagaland also has significant limestone deposits, particularly in the Tuensang and Phek districts, with notable reserves at Nimi, Wazeho, and Satuza, and the Mimi-Pyakatsu block.
The crude oil estimated at around 420,00,000,00 or 420 crore barrels is more than sufficient to establish at least two medium oil refineries in Tuli and Baghty. Talks of resuming oil operation came when the Centre had pushed through the proposal in the interest of Assam which has been heavily engaged in oil operations along the border with Nagaland.
The Union Ministry of Environment, Forest and Climate Change had approved exploratory drilling by Assam on a site in the DAB, which falls in Tzurankgong Range between Mokokchung and Jorhat districts of the two states.
The changed narrative came during January 2024 when the chief minister Dr. Neiphiu Rio spoke with media. He disclosed that the Centre had facilitated a meeting between Assam and Nagaland where both states agreed in principle on revenue earning on 50:50 basis from oil operations in the Disturbed Area Belt (DAB) along their border.
Elected members, at the recent budget session in the first week of March, expressed support for resumption of oil and gas operations. This was the dominant topic at the recent budget session during the first week of March.
Former Lok Sabha MP Tokheho Yepthomi, in a statement last year disclosed that in July 2022 Union Minister of State for Petroleum and Natural Gas, Rameswar Teli told Parliament that the ONGC was operating 8 oil fields in the DAB between Assam and Nagaland in response to his query.
As per data tabled in Parliament, Yepthomi revealed that there are a total of 36 known oil fields located in between the disputed Assam-Nagaland boundary, out of which Assam is drawing revenue.
He said Assam collected over Rs 10,400 cr in oil revenue during 2011-22. Then from 2017-18 to 2021-22, the revenue was tipped at Rs 9899 cr. Thus, based on the figures, Tokheho estimated that Nagaland was losing Rs 5 cr daily or Rs 1825 cr annually in oil royalty as a result of Assam benefitting from operating oil fields in the DAB.
What this means is that a very significant bulk of crude oil that Assam was extracting were located along the DAB with Nagaland. In the event the state government puts the proposal on the fast-lane the boon will be employment thousands of youths.
Even in the first phase – exploration, it will bring in not less than a few thousand crore rupees which will be a big boost for the local economy. It must be realized that the fossil fuels will no longer be available when crude gets exhausted by 2050 and by which time, electric cars and other more efficient fuel alternatives like hydrogen-driven engines will emerge in the next decade.