Kathmandu, July 30
Nepal is planning to resume an exploration of petroleum reservoirs in the country. If everything goes as planned, Nepal will begin deep drilling for petroleum products within next seven years.
The government was considering the plan some years ago, but it was stalled for last three years.
The Department of Mines and Geology has already identified 10 geographic blocks in Terai region in which petroleum might be found. Now, the government is planning to issue licences to foreign companies to investigate into those blocks and extract fuel if found.
The Cabinet has already endorsed an amendment to the Mine Extraction Regulation to facilitate the process. Once the amendment is published in the Nepal Gazette, the Department will call for tenders for licence, says the Department’s Director General Rajendra Khanal.
Around three years ago, the government led by the then Nepali Congress President Sushil Koirala had cancelled all such licences claiming the licence-holders did not do any job. No licence was issued since then.
“But now, the evaluation process will be transparent and effective and only capable companies will be selected,” Khanal says, “Therefore, the non-performance will not repeat. Once the companies are selected, we will begin extraction within seven years at a maximum.”
