The fourth day of the ongoing Budget session of the–NLA witnessed intense discussions on the issue of oil and gas operations as well as road conditions in the state. The discussion on oil operation saw several members expressing the need to urgently clear the decks in order to bring much needed revenue to the state.
Nagaland chief minister Dr. Neiphiu Rio reiterated the state government’s commitment to resuming petroleum exploration, stressing collaboration with stakeholders.
Dr. Rio highlighted the state’s rich petroleum reserves, first discovered by ONGC in 1973 at Changpang, Wokha. Production began in 1983 but ceased in 1994 due to royalty disputes and over-extraction. Rio outlined challenges and future plans to harness these resources for Nagaland’s economic growth.
Dr Rio recalled the state’s efforts to regulate oil exploration through enactment of the Nagaland Petroleum and Natural Gas Regulations and Rules, 2012. Following which an Expression of Interest (EOI) was tendered in December 2012, where Metropolitan Oil and Gas Pvt. Ltd. secured exploration rights in Wokha.
However, legal hurdles arose, including a Public Interest Litigation (PIL) and a suo motu case by the Gauhati High Court, which remains pending. Despite challenges, the state has been negotiating with the Ministry of Petroleum and Natural Gas (MoPNG) since 2018, citing constitutional protections under Article 371(A).
The chief minister informed the Assembly that the state’s oil-rich regions lie within the Disputed Area Belt (DAB) shared with Assam. He also informed the house about a crucial meeting that took place in Dimapur on September 21, 2021, with Union petroleum officials. The meeting discussed allowing oil exploration under the Open Acreage Licensing Policy (OALP) and resuming ONGC operations in Nagaland and the DAB.
Subsequently, a tripartite MoU involving India, Nagaland, and Assam was proposed, alongside a bipartite MoU for operations within Nagaland. He said the Ministry of Petroleum and Natural Gas (MoPNG) shared draft agreements, to which Nagaland provided feedback.
Then on September 9, 2022, Dr. Rio said he met Union Minister Hardeep Singh Puri, to advocate for a Nagaland-specific policy with smaller exploration blocks, direct revenue-sharing benefits, and a local refinery. Dr. Rio said pending a Supreme Court verdict, he proposed an equal royalty distribution across DAB sectors A to F to ensure fair economic benefits.
Dr Rio said efforts to resolve the petroleum exploration deadlock have led to multiple discussions between the central, Nagaland, and Assam governments. A High-Level Committee (HLC) from the Ministry of Petroleum and Natural Gas (MoPNG) visited Kohima on October 8, 2024, where Nagaland reaffirmed its special constitutional status.
He said further talks on November 13, 2024, focused on creating Nagaland-specific policies, while MoPNG stressed economic feasibility based on production volumes. In the event of resolving the issue, Dr. Rio expressed confidence that resuming petroleum exploration would boost Nagaland’s economy. He urged upon stakeholders to collaborate for the state’s economic growth and resource utilization.
Also taking part in the discussion, PHE minister Jacob Zhimomi advocated for a cautious, phased approach to petroleum exploration, emphasizing the need for legal clarity on revenue-sharing in disputed border areas. While supporting the state’s move to tap into its petroleum resources, he raised concerns over revenue distribution in contested territories along the Assam-Nagaland border.
Referring to Assam’s recent claims in its state assembly that Nagaland occupies 83,000 hectares of Assam land, Jacob noted that the matter is still pending in the Supreme Court. Given this, he recommended starting exploration in undisputed areas first.
“We are not against revenue-sharing, but we must seek legal advice to protect our land and people,” he said, stressing the importance of safeguarding Naga settlers’ rights.
Calling Article 371(A) a “true blessing”, he warned against misinterpretations of the special provision. He also highlighted that Naga communities have lived in these areas for over a century under official settlement orders.
“It’s time to explore our resources, but we must handle legal and land issues carefully to ensure fair benefits,” Jacob asserted. NPF legislator Achumbemo Kikon has called on the Nagaland Government to fast-track oil exploration and production in Changpang and Old Tssori, stressing the need for a state-based refinery to maximize local employment and revenue benefits.
Speaking in the Assembly, Kikon highlighted that oilfields in his Bhandari constituency are already in the production stage. He recalled that Changpang’s oil exploration began in 1973, under the then-Geology and Mining minister, now chief minister Neiphiu Rio.
Kikon alleged that ONGC mismanaged operations, extracting thousands of metric tons of crude oil, while Nagaland received only Rs.33 crore in revenue. He also noted that crude oil continues to seep from installed pipes, underscoring the urgency for regulated production.
Citing past protests, including Naga Students’ Federation (NSF)-led demonstrations, Kikon emphasized that ONGC’s overreach in extraction had long been opposed. On the legal front, he pointed out that a Public Interest Litigation (PIL) against oil extraction was withdrawn, but the Supreme Court retained the case suo motu, given its national significance.
Kikon argued that Article 371(A) is a political agreement that should be resolved through political negotiations rather than court proceedings. He revealed that Chanpang and Old Tssori landowners had already submitted No Objection Certificates (NOCs) in April-May 2024, which he personally handed to the Chief Minister.
Calling for a refinery in Nagaland, Kikon compared the situation to the Assam Accord, which secured a refinery for Assam post-agitations. “Our younger generation must not be deprived of this opportunity,” he asserted, urging immediate action.
JD (U) legislator Jwenga Seb urged immediate oil exploration in Nagaland, citing economic self-reliance and reduced energy dependency. Speaking under Rule 50 in the Assembly, he emphasized the need to unlock the state’s hydrocarbon potential.
Seb highlighted that 90% of Nagaland’s energy needs are met through imports, with petroleum consumption rising from 154 TMT (2019) to 172 TMT (2020). Nagaland, part of the Naga-Schuppen Belt in the Assam Arakan Basin, sits on vast untapped reserves, with only 11% of an estimated 1633 MMTOE discovered.
Recalling ONGC’s 1970s exploration in Wokha, Chümoukedima, and Dimapur, Seb stressed the need for systematic surveys. He advocated for an oil refinery, job creation, and sustainable, community-inclusive policies under Article 371(A). Calling for a Petroleum Exploration Licence (PEL) under a Revenue Sharing Contract (RSC), he urged decisive action to transform Nagaland’s economy and secure financial independence.
RPI (A) legislator from Noksen Y Lima Onen expressed concern that Article 371(A) has been misinterpreted, delaying the state’s development. He acknowledged the provision’s historical significance but argued that its misapplication has stalled resource exploration.
Warning that delays could lead to lost opportunities, Onen stated, “By the time we agree to explore, our oil fields may dry up.” He urged Naga leaders, civil society, and intellectuals to collaborate with the government.
“It’s time to stop sleeping over Article 371(A) and work for progress,” he asserted, calling for immediate action on petroleum exploration.