Government-owned Oil India is reportedly gearing up to kickstart exploration activities in Nagaland, following discussions with the state and central governments. Additionally, the company is looking forward to commencing oil production in Gabon, Central Africa, in the forthcoming fiscal year.

What Happened: A high power committee, comprising representatives from Oil India, ONGC, and government officials, has been formed to negotiate with the Nagaland Government and restart exploration, according to The Financial Express. Oil India has 30 blocks under the Open Acreage Licensing Policy (OALP). All the wells in these OALP blocks have been drilled, except those in Nagaland.

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The company has a 3000 square kilometre area in Nagaland under its purview. The Assam and Nagaland governments have previously deliberated over settling border disputes and the feasibility of oil exploration in these contested areas for economic gain. However, these discussions have not yielded much progress.

The Nagaland government asserted last year that exploration in disputed areas with Assam would not begin without consulting all stakeholders and tribal bodies.

Oil India is presently engaged in exploration activities in 27 OALP blocks spread across various states and offshore areas. The company is awaiting a valid petroleum exploration license (PEL) for the AA-ONHP-2018/2 OALP block on the Assam Arakan basin.

Internationally, Oil India and Indian Oil Corp each own a 50% stake in the Shakthi-II block in Gabon. The company has drilled three wells in the block and intends to drill two more, following a recent oil discovery.

Price Action: Shares of the company were down 1.30% to ₹571.15 on Thursday morning.

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