Centre, Assam and Nagaland Sign Landmark Pact to Boost Oil Exploration in Boundary Areas

New Delhi: In a major step towards unlocking the hydrocarbon potential of the Northeast and strengthening India’s energy security, the Centre, Assam and Nagaland on Thursday signed a tripartite Memorandum of Understanding (MoU) to facilitate mineral oil exploration and production activities in the Assam-Nagaland boundary areas.

The agreement was signed in the presence of Union Home Minister Amit Shah and Union Petroleum and Natural Gas Minister Hardeep Singh Puri. Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio also attended the event.

Describing the pact as a “historic moment”, Amit Shah said the agreement would remove long-standing hurdles to oil and natural gas exploration in the region and contribute significantly to Prime Minister Narendra Modi’s vision of a prosperous and developed Northeast.

The Home Minister said the two states had demonstrated a spirit of cooperation by prioritising national interest and agreeing to facilitate the exploration of resources that constitute national wealth. He noted that the agreement would not only support hydrocarbon development in the identified areas but also open new opportunities for mineral exploration and mining across the region.

Shah revealed that the Nagaland government has agreed to allow oil exploration beyond the six designated fields, while the Assam government has also extended its support to the initiative. He said the move would create a win-win situation for all stakeholders and accelerate economic growth in both states.

Highlighting the resource potential of the Northeast, Shah said the region possesses substantial reserves of oil, natural gas and minerals. He expressed confidence that the current extraction level of around 1,000 to 1,500 barrels per day could increase more than tenfold following the implementation of the agreement.

The Home Minister said enhanced exploration and production in Nagaland could help reduce India’s dependence on imported energy resources while generating economic opportunities and investments in the region. He added that unresolved issues and operational challenges had affected the economic development of Assam and Nagaland for many years, but the new agreement would pave the way for greater prosperity.

Calling the pact an example of cooperative federalism, Shah said the Centre and the two state governments had come together to create a stable and enabling environment for petroleum exploration and production activities.

He also highlighted the broader transformation taking place in the Northeast under the Modi government, stating that twelve peace agreements signed since 2019 have helped reduce violence in the region by nearly 80 per cent. Improved peace and stability, he said, have contributed to rapid infrastructure growth, increased tourism and higher private investment.

Shah further noted that more than 80 per cent of the Northeast has been freed from the Armed Forces (Special Powers) Act (AFSPA) and expressed hope that the law would be withdrawn from almost the entire region by next year.

According to officials, the MoU establishes a coordinated framework to facilitate mineral oil operations in the identified Areas of Interest while ensuring operational continuity, safety and security of personnel and assets. The agreement is expected to encourage investments in the upstream petroleum sector and provide greater certainty for ongoing and future exploration projects.

The Ministry of Home Affairs facilitated discussions leading to the signing of the agreement in coordination with the Ministry of Petroleum and Natural Gas and the governments of Assam and Nagaland.

Officials said the pact reflects a shared commitment to promoting energy exploration through collaborative mechanisms while supporting economic development, regional stability and India’s long-term energy security goals.