Explorers expect oil boom in Mizoram

Aizawl, Sep 4 (Agencies): Officials engaged in oil and gas exploration
in Mizoram are expecting a major oil-driven economic boom in this
otherwise economically backward northeastern state.

''We hope that crude oil would usher in a big economic boom in
Mizoram. Our surveys so far have promised a rewarding success,''
officials of oil exploration companies engaged in Mizoram told Chief
Minister Lal Thanhawla at his office here today.
Appreciating their activities, the Chief Minister asked them to bring
their problems to him without hesitation and assured them every
possible assistance on the parts of the government. Lok Sabha MP from
Mizoram, C L Ruala, who facilitated the meeting, also promised to
convey to the Centre whatever problems the explorers have.
Officials said Mizoram fell under category number one or proven
commercial productivity zone which roughly estimates there could be
about 170 million metric tonnes of untapped crude reserves.
Currently, 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), is currently carrying out its hunt for crude in an area of
about 5,340 sq km.
Three companies from overseas - Frances Geopetrol International Inc,
Russias Naftogaz and Cyprus Suntera Resources Ltd and Russias Suntera
Resources Ltd - are among the eight companies inking deed of agreement
with the state government following a global bid by the Union
government.
The others are state-owned Oil India Ltd, 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.
So far, Mizoram has collected more than Rs two crore as licence fees
from the oil exploration companies, the officials informed the Chief
Minister. Despite the mountainous terrain and the logistical problems
in terms of infrastructural facilities, exploration works in Mizoram
may not be too difficult, the officials said. They expressed gratitude
to the good cooperation they had received from the locals.
''We have never experienced this kind of cooperation from locals
anywhere else,'' they said