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Oil-production activities to resume within a year
Al Ngullie
Dimapur |June 26
It is confirmed that Oil & Natural Gas Corporation (ONGC) will resume oil production activities in Nagaland by the coming mid-year. However, the ONGC will be undertaking the exploratory/production work through a partner corporation, the Canada-based Canoro Resources.
Canoro Resources Ltd., entered into an agreement, ‘Joint Study Agreement’ with the ONGC last week wherein it was agreed that the two would strategically align interests for exploration, development and production activities in six blocks held by the ONGC in Nagaland.
Interestingly, at the time of filing of this report highly-placed sources informed that surveyors and officials from Canoro Resources had actually been undertaking inspecting duties in and around the state, with particular reference to Champang ONGC oil belt. The oil production activities are expected to commence sooner as the clauses in the JAC are fulfilled i.e., study and identification of oil veins.
Confirming of the ONGC’s second foray ever since the oil-explorations were stopped in 1994, Lalthara, the Additional Chief Secretary & Development Commissioner (Geology & Mining), said it is up to the Government of India to identify a corporation in concern to undertake exploratory activities. And select the same. The state government is only to issue license/permit for the same, he informed.
“Yes, they (ONGC/Canoro Resources) are coming,” Lalthara confirmed. He however said no official intimation or correspondence has been exchanged when “they” will come to station for the production works. “But definitely (the companies will come)” the ACS said in response.
To the query that A.K. Hazarika, Director-onshore for ONGC had opined that the state government was already providing support and security, ACS Lalthara said the corporation has yet to approach the government for the same, officially.
It is also learnt that the state government has invited Canoro Resources to present a power-point detail on the funds and assessment activities involved in the matter in question. Canoro has accepted the invitation and will be presenting the details on June 29, 2007 at the inaugural function of the State Geology Programming Board in Kohima at the Geology Directorate. Chief Minister Neiphiu Rio is the chief guest, a highly-placed state source disclosed.
A senior state official said on condition of anonymity that the ONGC may have undertaken the agreement with Canoro to ‘cover many of its (ONGC) many bitter experiences in the past.’ The ‘bitter experiences,’ the senior state official said, include conflict of interest with the people and the NSCN-IM.
It was observed that the corporation deciding to resume operations in Nagaland, despite threats from Naga separatists and civil society, would result in more complications. The ONGC can remain in the background while the Canada-based Canoro acts as the ‘drilling-head.’
The State government, a stakeholder, has granted permission to the ONGC-Canoro combine to resume work in the six blocks. It was informed that Canoro, in fact has already commenced needful exploratory activities in one of the blocks within the Assam-Nagaland oil sector. An official confirmation has yet to be received.
Another interesting detail that was received is Canaro officials meeting with the Geology & Mining department. Additional Director S Kenye said they are “keeping in touch” although at an unofficial level. The “keeping in touch” for now is limited only to “finding ways and means” towards the whole objective of the oil-production exercise, it was informed. ONGC from the Assam-side, in fact, are said to be undertaking survey works within the Nagaland side of the Disputed Area Belt (DAB).
Mention may be made here of a report in The Telegraph which highlighted ONGC’s Director on-shore AK Hazarika stating that the corporation would resume operations in Nagaland. He was also quoted as saying that the Nagaland government was providing “support and security” and under this, feasibility reports would be completed very soon.
Morung Express News
