JOGL seeks to withdraw from oil exploration
Source: The Sangai Express

Imphal, April 09 2018: The Netherlands based Jubilant Oil and Gas Limited (JOGL) which has been exploring petroleum in the State has expressed their desire to withdraw from the same exercise.

JOGL was given licence by the Ministry of Petroleum and Natural Gas to explore hydrocarbon fuel in the State over an area of 3840 square Kms spread over two blocks namely Jiribam and Tamenglong-Churachandpur.

After a production sharing contract was signed for the first block on June 30, 2010, the State Government gave JOGL petroleum exploration licence on September 23 same year.

Production sharing contract for the second block was signed on July 19, 2010 and petroleum exploration licence was issued on September 20, same year.

According to a report furnished by the Netherlands based company, the two blocks may have oil reserves of 380 billion cubic feet to 1.43 trillion cubic feet.

Even though JOGL took up the oil exploration work with zeal and enthusiasm, they recently conveyed their desire to withdraw from the oil exploration contract as they encountered a number of difficulties.

Two main obstacles faced by JOGL are absence of road infrastructure fit for transportation of heavy equipment and non-issuance of environmental clearance for the project by the Ministry of Environment and Forest and Climate Change, informed the source.

JOGL's intimation submitted to the Ministry of Petroleum and Natural Gas to withdraw from the production sharing contracts signed with the State Government has been forwarded to the Government of India through the Directorate General of Hydrocarbon.

The matter would be discussed at a meeting of the Empowered Committee of Secretaries at New Delhi tomorrow.

The Ministry earlier sought the State Government's comment on the company's intimation to withdraw from the production sharing contracts but it is not yet sure what feedbacks the State Government gave, added the source.

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