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Historic MoU Signed for Oil and Gas Exploration Between Assam and Nagaland

In a landmark development, Assam and Nagaland have signed a tripartite MoU with the Central government to explore and produce crude oil and natural gas along their disputed boundary. This agreement, which ends decades of stalled activity, aims to unlock significant hydrocarbon resources in the region. Union Home Minister Amit Shah hailed the signing as a historic moment, emphasizing the government's commitment to resolving long-standing territorial disputes. The pact targets the Disputed Area Belt, a region rich in resources but historically contentious. This agreement is seen as a major step towards cooperative federalism and regional development.
 

Significant Agreement for Resource Exploration

File image of Nagaland CM Rio (left) with Assam Chief Minister Sarma. (Photo:X)

New Delhi, June 11: On Thursday, the governments of Assam and Nagaland, along with the Central government, formalized a tripartite Memorandum of Understanding (MoU) aimed at exploring and producing crude oil and natural gas along their disputed inter-state boundary. This agreement marks the end of nearly thirty years of inactivity in a region rich in resources but fraught with territorial disputes.

The MoU was signed at the Ministry of Home Affairs in New Delhi, with Union Home Minister Amit Shah, Assam Chief Minister Himanta Biswa Sarma, and Nagaland Chief Minister Neiphiu Rio in attendance.

This agreement is set to enable exploration and production activities over an area exceeding 1,000 square kilometers along the 434-km boundary between Assam and Nagaland, which is believed to contain significant hydrocarbon and mineral reserves.

Shah characterized the signing as a "historic moment," stating that the MoU not only boosts prospects for oil and natural gas exploration but also opens avenues for mineral extraction.

He emphasized that the Prime Minister has envisioned a prosperous and developed Northeast, and this agreement removes a significant barrier to achieving that goal.

The pact focuses on the Disputed Area Belt (DAB), a contested region along the inter-state boundary where exploration efforts have been stalled since the mid-1990s due to ongoing boundary and jurisdictional disputes. This area is regarded as one of the most promising hydrocarbon prospects in Northeast India.

Chief Minister Sarma hailed the agreement as a pivotal breakthrough and a testament to cooperative federalism. He noted that the pact demonstrates the Modi government's dedication to addressing complex, long-standing issues that have historically impeded development and resource utilization in the region.

This MoU is particularly significant given the backdrop of recurring tensions along the border. In February 2025, the Nagaland administration reportedly threatened to close an ONGC drilling station in Uriamghat, Golaghat district. Earlier, in January 2025, ONGC had to relocate its drilling operations from Sarupathar to Uriamghat due to threats from individuals across the state border.

The agreement is viewed as a crucial step in cooperative federalism, aimed at unlocking hydrocarbon resources in a region where territorial claims, resource access, and local governance have frequently been at odds.