Kathmandu, Mar.
23: The government has failed to call a global tender to explore for petroleum
at different 10 locations across the country.
The Ministry of Industry, Commerce and Supplies (MoICS) last year had
announced to expedite the petroleum exploration process – in 10 identified
blocks, from Dhangadhi in the west to Biratnagar in the east – by calling proposals
from international companies for the petroleum exploration and development
work.
But there has been no significant progress in this regards.
Ministry sources said that the frequent changes in the government,
elections and implementation of federalism have halted the process of petroleum
development.
“However, the MoICS and the Department of Mines and Geology (DMG) have
been working on the project. The tender will be called at the earliest,” said
the DMG.
A Chinese company had come to Nepal last year for the same purpose
after the then government made a request to the northern neighbor, but the
company is yet to submit the report.
The government had brought out the National Mines Policy in 2017,
and amended the Petroleum Regulations 1985 for the fifth time in order to
simplify the modalities and processes for selecting companies for petroleum
exploration and development.
A high-level government committee, Infrastructure Project Monitoring
High-Level Committee, in 2016 had directed the MoICS to initiate petroleum
exploration process in 10 different blocks across the Terai and the Chure area,
and asked the government to seek international technical assistance to conduct
geological studies.
The 10 exploration blocks, each consisting of about 5,000 square
kilometers, are Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj,
Malangwa, Janakpur, Rajbiraj and Biratnagar.
Though a British company, Cairn Energy, obtained license in 2004 to
explore five fields – Dhangaghi, Karnali, Lumbini, Birgunj and Malangawa – and
BBB Champion and EABG also joined the suite in 2012 to explore Biratnagar and
Janakpur blocks respectively, they remained inactive and the exploration
witnessed no progress.
The government scrapped the licenses of these companies in January
2015.
Published in The Rising Nepal on 24 March 2018.
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