Petroleum Exploration Promotion Project, Department of Mines and Geology has conducted a series of geological, geophysical and geochemical surveys in different parts of the country from Mechi to Mahakali zones and found the availability of petroleum products there.[break]
Following this, the government has recently signed a petroleum exploration agreement with two international companies.
According to Project Chief Rajendra Prasad Khanal, the government had last month signed agreements with the USA-based company BB Champion and the UAE based EABG Company for petroleum exploration.
As per the agreement, the exploration work shall take place at Janakpur and Rajbiraj Block which is spread in 9,861 square kilometers of land and in Biratnagar Block spread in 4,969 square kilometer of land.
Both the companies have started preliminary studies and are planning for conducting exploration works in acreage. The exploration task will take place in line with the Nepal Petroleum Act -1983 and Petroleum Regulation -1985, said Khanal. These companies could conduct exploration works in different locations for research and commercial purposes.
They are given four years for preliminary study.The government has already given licenses to international companies for exploration works in all 10 Blocks selected for petroleum exploration.
The government had already signed two petroleum agreements with Cairn Energy PLC UK in 2004 for petroleum exploration in Block 1 (Dhangadhi), Block 2 ( Karnali), Block 4 ( Lumbini) Block 6 ( Birgunj) and Block 7 ( Malangawa).
Likewise, the government in 1998 signed an agreement with Texana Resources Company, Houstan, Texas, USA for petroleum exploration in Nepalgunj and Chitwan blocks.
According to Khanal, the American company is expected to present the exploration report within the next 13 to 14 months while the Cairn is expected to present the report within the next six to seven months.
Khanal admits that though it has been around three decades of the establishment of the Project, no remarkable achievement has been made in the sector of petroleum exploration.
Related story
Exploration of petroleum products will be carried out within tw...
