The governments of Assam, Nagaland and the Government of India signed a Memorandum of Understanding on June 12, 2026, to break a three-decade-old impasse on oil and natural gas exploration across roughly 1,000 sq km along the Assam–Nagaland border. The MoU was signed in Guwahati in the presence of Union Home Minister Amit Shah, Union Petroleum Minister Hardeep Singh Puri, Assam Chief Minister Dr Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio.
Union Home Minister Amit Shah said the two states had “set aside their differences” in the national interest and that the agreement will spur economic development in both states. He added that oil discovered in Nagaland could provide “succour to the nation” in the event of a future supply crisis. Shah also expressed hope that the Armed Forces (Special Powers) Act, 1958, would be withdrawn from the region; his reference to withdrawal “by next year” corresponds to a target of 2027.
Assam Chief Minister Himanta Biswa Sarma called the MoU a “decisive breakthrough” to unlock the region’s untapped potential, saying the identified area could yield significant opportunities for hydrocarbon exploration and mineral extraction and help meet the country’s long-term energy needs. He said the move is expected to accelerate investment in the energy sector and create new economic opportunities across the Northeast.
Oil and gas exploration in Nagaland had effectively stopped in the mid-1990s amid jurisdictional disputes, local protests and legal complexities linked to the state’s special status. In April 2023, the two states reached an out-of-court understanding to resume hydrocarbon work in disputed areas with a proposal for equal revenue sharing.
Under the new MoU, exploration and production in the border area will proceed jointly, with participation from public sector undertakings and private energy companies. The agreement also provides for a coordinated law-and-order management system to minimise local conflicts during exploration activities.
Officials say the pact aims to balance energy development with local stability and fair revenue distribution. If implemented smoothly, the joint exploration could strengthen regional investment, create jobs and contribute to national energy security — while requiring careful management of on-the-ground concerns and legal arrangements.
Original Source: https://www.sentinelassam.com/topheadlines/centre-assam-and-nagaland-ink-historic-mou-to-end-30-year-deadlock-on-border-oil-gas-exploration
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Publish Date: 2026-06-12 07:43:00
