Context:
The Centre, Assam and Nagaland have signed an MoU to resume oil and gas exploration in the Disputed Area Belt along the Assam–Nagaland border after nearly 30 years.
The agreement aims to unlock hydrocarbon resources, increase domestic production and strengthen India’s energy security.
Northeast Hydrocarbon Potential
- Assam is the birthplace of India’s oil industry.
- Digboi is one of India’s earliest oil centres.
- Assam accounts for nearly 22% of India’s crude oil reserves.
- Assam accounts for around 15% of India’s natural gas reserves.
Major Oil and Gas Fields
- Digboi
- Naharkatiya
- Moran
- Lakwa
- Rudrasagar
Nagaland’s Potential
Nagaland has significant untapped hydrocarbon potential in the Naga Schuppen Belt of the Assam–Arakan Basin.
MoU Coverage
The MoU covers a resource-rich belt of over 1,000 sq km along the inter-state border.
Upstream and Downstream
Upstream
- Exploration
- Drilling
- Production of crude oil and natural gas
Downstream
- Refining
- Processing
- Storage
- Transportation
- Distribution
- Marketing of petroleum products and natural gas
Petroleum and Natural Gas Regulatory Board
Status
- Statutory body under the PNGRB Act, 2006
Functions
PNGRB regulates downstream activities only, such as:
- Pipelines
- City Gas Distribution
- Transportation
- Marketing
Important Limitation
PNGRB does not regulate upstream activities such as exploration and production.
PYQ Fact
Exploration and production of crude oil / natural gas fall outside PNGRB’s jurisdiction.
Transportation, distribution and marketing fall within PNGRB’s jurisdiction.
