Monday, April 13, 2009

Mizoram ‘floats’ on a vast oil field

Aizawl: Mizoram, a mountainous state of the Northeast India, believed to have been formed out of 'Tectonic Evolution of the Indian Continent,' is literally floating on a vast oil field.

Mizoram, including parts of the neighbouring states, is believed to be literally floating on huge unexplored hydrocarbon reserves, Dr H Lallenmawia, joint director of geology & mining wing under the state’s industries department, told UNI here on Sunday, adding ,'' The geographical condition with which Mizoram is believed to have been formed determines the high potential in crude oil.

The geologist informed that Mizoram falls under category number one or 'proven commercial productivity zone' which roughly estimates there could be about 170 million metric tonnes of untapped crude reserves.

The oil reserve could be even more and, if tapped, the state would witness an economic boom to the extent of earning a sobriquet of Kuwait of the Northeast India, Lallenmawia said.

At present, as many as five Indian companies are engaged in a hunt for crude oil in a total of 12,427 sq km area, which is 58.9 per cent of the state total area.

India's premier exploration firm, the Oil and Natural Gas Corporation (ONGC), carrying out its hunt for crude in an area of about 5,340 sq km, is set for deep drilling, the official said.

Three foreign companies - France's Geopetrol International Inc, Russia's Naftogaz and Cyprus' Suntera Resources Ltd and Russia’s Suntera Resources Ltd among the eight companies which had inked deed of agreement with the state government. The others are India’s Oil India Limited, Reliance Natural Resources Ltd, and Shivani Oil and Gas Exploration Services Ltd.

According to the agreements, 12 per cent of oil produced and 10 per cent of gas produced will go to the state of Mizoram as royalty.

As recommended by the 11th Finance Commission the net profit will also be shared 50:50 between the state and the central government, Lallenmawia informed, adding, '' moreover there will be lot of job opportunities for sons of the soil and global investments in the state.''

As of now, the predominantly Christian state is largely an agrarian state where about 80 per cent of the population still depends on agriculture, mainly shifting cultivation and does not have any industry. (UNI)

No comments:

Post a Comment