Morung Express News
Dimapur | July 10
Beyond providing for joint governance and equal sharing of revenues, the Tripartite Memorandum of Understanding (MoU) on oil exploration in the Assam-Nagaland boundary areas places responsibility on the governments of Assam and Nagaland to manage issues involving local civil society organisations, tribal bodies and village councils during mineral oil operations.
The provision forms part of the commitments and responsibilities undertaken by the two states under the agreement, which reads: “The States shall deal with activities of local Civil Society Organizations, tribal bodies, village councils, etc. in connection with the operations.”
Recognising that the petroleum industry is capital intensive, Assam and Nagaland have agreed to ensure certainty, uniformity, safety and security for exploration and production companies, their personnel, machinery, equipment and infrastructure operating in the designated “area of interest for mineral oil operations.”
Apart from granting all necessary petroleum leases, licences, permissions and statutory clearances, while ensuring that mineral oil operations are carried out without hindrance, the MoU also agreed to promote private participation in exploration and production in accordance with national policy.
Both governments are also required to ensure that mineral oil operations comply with the Oilfields (Regulation and Development) Act, 1948, related rules and Union Government policies, while taking all necessary steps to protect mineral oil infrastructure and investments made by exploration and production companies.
The MoU further clarified that its provisions apply only to mineral oil operations within the designated “area of interest for mineral oil operations.” Existing mineral oil operations, licences, contracts, revenues and other rights relating to areas outside the designated sectors will continue to be governed by their respective laws, leases and contractual arrangements.
As reported earlier by The Morung Express, the MoU establishes an interim framework for the exploration, development and production of mineral oil resources in six designated sectors along the Assam-Nagaland boundary, designated as the “area of interest for mineral oil operations.”
It also provided for joint administration of petroleum leases and governance, equal sharing of royalties, coordinated regulation, among other provisions.
The MoU explicitly stated that the arrangement does not prejudice the respective legal positions of Assam and Nagaland or the pending boundary dispute between the two states before the Supreme Court.
The agreement, signed on June 11, 2026, was placed before the ongoing Budget Session of the Assam Legislative Assembly on July 8 as part of a written reply by Border Protection & Development (BP&D) to a starred question.
