Nepal has taken a historic step in the field of petroleum exploration for the first time. According to the Department of Mines and Geology, drilling has been conducted up to a depth of 4.2 meters in Jajarkot, Bhairabi Village Municipality–1, Jaljale Makulam, and samples have been extracted. The department has described this achievement as historic.
The Chinese Geological Survey Company conducted the geological study for this project, and the drilling work was completed by CNPC Engineering. According to Information Officer Narayan Baskota, the samples will now be sent to China for further study. The samples collected during the exploration have shown signs of natural gas.
Petroleum Exploration: Recent Progress
The Government of Nepal aims to complete petroleum exploration within the current fiscal year 2081/82. Following an agreement with China in 2072, the detailed exploration project was approved in 2075. The project has been advanced in the Dailekh region with financial and technical assistance of 2 billion 40 crore rupees.
Project Phases
In the first phase of exploration, geological surveys were conducted to identify the drilling site. The second phase involved the completion of drilling, and the third phase will prepare the survey report. The report is expected to be available by February 2025.
Possibilities and Economic Impact
The drilling has indicated the presence of natural gas reserves in the Dailekh region. After quality testing in China, the possibility of commercial production will be confirmed. If commercial production is feasible, an international tender will be called to select the production company.
Currently, Nepal imports all petroleum products, and this achievement is expected to have a significant impact on the economy.
Long History
Efforts for petroleum exploration in Nepal began as early as the 1960s. This is the first exploration conducted through drilling in Dailekh. In 1978/79, with the support of the World Bank, surveys were conducted in the Terai and Chure regions.
Nepal has been divided into 10 blocks for petroleum exploration, but the most progress has been made in the Dailekh region.
This historic effort is believed to help Nepal become self-reliant and open new possibilities in the energy sector.
