Ongc Eager To Resume Operations In Nagaland
The petroleum ministry has sought the home ministry's intervention in restarting operations of the Oil and Natural Gas Corporation (ONGC) in Nagaland. The corporation is losing one lakh tonnes of crude oil every year since winding up operations in 1994.
The corporation was forced to suspend its operations in the state in April 1994 following a campaign launched by the Naga Students Federation and Naga Peoples Council.
These outfits dubbed the corporation's activities in the state as acts of economic exploitation.
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This was followed by several incidents of attacks on ONGC employees and bombing of oil rigs.
The state government, too, asked the corporation to cease its operations alleging that it had violated the agreement over extraction of crude oil.
ONGC was engaged in oil drilling and exploration activities in six sites in Nagaland in Bhbdari, Changpang and Dimapur areas in Wokha and Dimapur districts after obtaining the petroleum exploration licences (PEL) and mining leases (ML) from the state government.
It established geological reserves of 16.09 million tonnes of oil and drilled 36 wells in the state.
Oil was also discovered in Changpang in Wokha district. The cumulative oil production in April 1994 stood at was about 1.02 million tonnes.
The corporation has made an investment of Rs 162 crore for exploration and production activities in the state.
Consequent to a decision taken in May 1994 by the state cabinet, the Nagaland government asked ONGC to stop production work in the Changpang area citing two reasons for its decision _
The ONGC had extracted more than 18,000 litres of crude oil which was against the PEL agreement of 1973; and
The interpretation of Article 371.A of the Constitution which bestows special powers on the state government regarding ownership and transfer of land and its resources.
Though the corporation conveyed its interpretation of the PEL and that of Article 371 A of the Constitution to the Nagaland government, the latter did not accept these.
ONGC has told the petroleum ministry that summary stoppage of work was against national interest since the country stood to lose one lakh tonnes of crude oil per annum.
Further, it was having a demoralising effect on ONGC personnel not only in Nagaland but the entire Northeast.
The petroleum ministry has told the home ministry that the ONGC would have no objection in signing an agreement with the Nagaland government if it is in accordance with law.
The home ministry has been requested to take up the issue with the state and persuade it to allow ONGC to restart oil production till such time as a formal agreement is drawn up.