Assam govt signs agreement with OIL for hydrocarbon exploration

Guwahati, Sept 8 (UNI) An agreement for exploration and production of hydrocarbon resources in two blocks of upper Assam was signed between the state-owned Assam Hydrocarbon and Energy Company Limited (AHECL) and Oil India Limited (OIL) today, marking the next step ahead after the signing of an MoU between the two parties a few months back.

The AHECL, launched as a core holding company for promoting Assam's stake for meeting future energy needs, had already signed an MoU with OIL, whereby the state government would invest 10 per cent of the required investment through the AHECL.

The AHECL and OIL had bidden successfully for two blocks in Amguri and Dibrugarh in New Exploration and Licensing Policy (NELP) VI, conducted by the Directorate General of Hydrocarbon, Government of India, recently.

Today's agreement made the MoU functional between the two stake holders.

Chief Secretary P C Sharma signed the agreement on behalf of the government, while OIL was represented by its CMD M R Pasrija. Speaking on the occasion, Chief Minister Tarun Gogoi said, " The state has abundant of natural gases and oil. We have been insisting with the Centre for greater exploration. " Welcoming the collaboration with OIL, he said, " Their vast experience and expertise in this filed will benefit us. " Mr Gogoi informed both OIL and ONGC were going for massive exploration in the state and it was a welcome step as tapping the resources available would help bring in royalty and lessen the dependence on imported crude oil and petroleum.

Rise in the international market price of oil had made exploration much more profitable now, he added.

OIL CMD M R Pasrija informed that exploration would first start in the Amguri block in Sivsagar district, latest by June next year.

The Dibrugarh block would take some time as the area included forest land and riverbed, and environment clearance had to be procured, which would take up some time, he added.

UNI