MLA Humtsoe seeks economic transformation through oil, gas resources

KOHIMA — MLA Y Mhonbemo Humtsoe urged the Nagaland Legislative Assembly to prioritise the resolution of long-standing roadblocks hindering the exploration and extraction of the state’s rich oil and natural gas reserves.

Speaking during a zero-hour discussion on the issue, he emphasised the significant economic potential that remains untapped due to the ongoing impasse.

Humtsoe highlighted the Changpang Oil Block in Wokha district as an example of missed opportunities. Allocated to the Oil and Natural Gas Corporation (ONGC) in 1973, he said that the block saw significant production between 1980 and 1994, yielding high-quality crude oil and gas.

Citing a statement made in 2018 by then Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan, he said that the ONGC produced 1.036 million metric tons of crude oil during this period, but operations were abruptly halted in May 1994 due to pressure from student communities and social organisations.

He also maintained that the Ministry of Petroleum and Natural Gas Estimates Committee’s 1998-99 report revealed that ONGC paid INR. 33.29 crore in royalties to the Nagaland government from 1980 to 1994. Out of this, INR 67.57 lakh was distributed among the oil-bearing landowners and affected households of Changpang and Old Tssori villages, he said.

Humtsoe rued the economic loss incurred by the state due to the cessation of oil production, stating that Nagaland could have potentially earned thousands of crores in revenue and royalties had exploration and production continued over the past 30 years. He emphasised that the actual production of crude oil could have been more than ten times the production achieved from 1980 to 1994.

Drawing a comparison, the MLA highlighted a recent statement by the Union Minister of State for Petroleum and Natural Gas, which revealed that ONGC extracted 657,432 metric tons of crude oil from the Disputed Area Belt (DAB) between Assam and Nagaland between 2018 and 2022. This extraction yielded approximately INR 3,399.79 crore in royalties, with Assam receiving INR 553 crore.

Based on this, Humtsoe proposed that if Assam and Nagaland could reach an agreement to share royalty proceeds from the DAB equally, Nagaland could potentially receive INR 276.50 crore. This substantial sum, he argued, could be used to fund vital infrastructure projects, boost industries, enhance healthcare and education, and create much-needed employment opportunities.

Further, Humtsoe expressed optimism that with the collective will of the government, Assembly members, and the people of Nagaland, the state could unlock its economic potential through the responsible utilisation of its oil and natural gas resources.

He urged the government to take immediate steps to resolve the issues and harness the state’s natural resources for the common good.