Major Events Vol. 3 Issue No. 35

September 16-30, 2007

Foreign companies to tap oil sector in North-East

In a bid to explore the oil and gas sector, several foreign companies have lined up a series of projects in the North-East. These companies have entered the region under the New Exploration Licensing Policy (NELP). According to official statistics, the total foreign investment in the oil and gas sector during the last five years stands at around Rs 150 crore, of which Assam has received a lion’s share from foreign investment.

Canoro, a Canadian company which has been operating in Sivasagar, Golaghat and Jorhat with an investment of Rs 45 crore, is now in the process of procuring oilfield in Nagaland. “Our discussions with the Nagaland Government are heading towards right direction and we will be launching our operation soon,” highly-placed official sources told this Correspondent today. They also informed that Canoro is trying to expand its wings to other parts in the region.

Similarly British company Premium Oil, which has invested around Rs 30 crore, has been exploring in Cachar area. Premium is also keen to venture into the new areas in the region. Another French company — Geo-Empro — has made an investment of Rs 70 crore in Arunachal Pradesh.

It is learnt that GeoPetrol, a French company, will soon launch operation in the Northeast with a huge investment. The company has already procured necessary license from the Petroleum Ministry to start operation.

Expressing satisfaction with the flow of foreign investment, the leading trade body Federation of Industry and Commerce of North Eastern Region (FINER) said that it is a good sign for the region. “We always welcome private participation in the oil and gas sector considering its potential, but at the same time these companies should properly handle the local issues like employment and environment,” FINER CEO Ajoy Borthakur said. He further said that the entry of foreign companies would boost the growth of ancillary industries. “Oil and gas sector in the region is still untapped for which more companies should come to this region,” he added.

The size of Indian oil and gas sector is estimated to be around $90 billion. The oil and gas sector is also one of the largest contributors to central and State Government exchequer amounting to $13.58 billion.

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