Kohima: Nationalist Congress Party (NCP) MLA Mhonbemo Humtsoe on Tuesday raised concerns over the substantial revenue loss the state has incurred due to the stalled oil exploration activities in the Changpang Oil Block and other potential oil-bearing areas in Nagaland.
During the first day of the fifth session of the 14th Nagaland Legislative Assembly (NLA), Humtsoe detailed the history of the Changpang Oil Block, a 12 sq kilometer area in Wokha District, which was awarded to the Oil and Natural Gas Corporation (ONGC) in 1973 by the Government of India for the purpose of crude oil exploration and exploitation.
He recounted that the ONGC drilled 31 wells in the block, with 21 producing high-quality crude oil and two yielding gas. He informed that from 1980 to 1994, the block produced approximately 1.036 million metric tonnes of crude oil, according to data from the Ministry of Petroleum and Natural Gas.
However, in May 1994, under pressure from student organisations and mass-based social organisations, the Nagaland government and ONGC were forced to halt operations in the Changpang-Old Tssori Block.
Humtsoe emphasised that this cessation of operations has led to a massive loss of revenue for the state, which could have reached thousands of crores if oil exploration had continued.
Humtsoe cited a 2012 report from The Telegraph, which estimated that during the active years of the Changpang oil block, crude oil production averaged 250 metric tonnes per day, or approximately 4,453 barrels daily.
He also referenced a report from the Ministry’s Estimates Committee in 1998-99, which noted that ONGC paid Rs 33,29,17,727.70 in royalty to the Nagaland government between 1980 and 1994. However, only Rs 67,57,000 was distributed to the landowners and affected villagers of Changpang and Old Tssori.
Humtsoe lamented the fact that if ONGC or another national oil company had continued exploration and production in the last 30 years, the state could have seen a tenfold increase in crude oil production. H
e stressed that the potential revenue from these activities would have significantly boosted Nagaland’s economic development and improved the living standards of its citizens.
Further, Humtsoe highlighted the ongoing issue of oil extraction in the Disputed Area Belt (DAB) between Assam and Nagaland. He pointed out that from 2018 to 2022, ONGC extracted 6,57,432 metric tonnes of crude oil from eight fields in this area, generating an estimated royalty of Rs. 3,399.79 crore. Of this, Rs 553 crore was paid entirely to the Assam government. Humtsoe estimated that a fifty-fifty royalty sharing agreement between Assam and Nagaland could have brought in Rs 276.50 crore for Nagaland during this period.
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Humtsoe expressed confidence that with the support of the Nagas and the members of the Assembly, Nagaland could achieve economic independence by fully harnessing its abundant resources.
This issue, he said, was taken up in the state Assembly for the benefit of all concerned, so that the Nagas could one day salvage economic independence in the near future.
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