Assam-Nagaland Sign MoU for Oil and Gas Exploration

On 11 June 2026, India, Assam and Nagaland signed a tripartite Memorandum of Understanding for joint exploration and production of crude oil and natural gas along the Assam-Nagaland border. The agreement covers six identified disputed fields and a border area of more than 1,000 square kilometres.

Tripartite Agreement and Signatories

The MoU was signed in New Delhi in the presence of Union Home Minister Amit Shah, Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Assam Chief Minister Himanta Biswa Sarma and Nagaland Chief Minister Neiphiu Rio. The agreement provides a formal framework for coordinated hydrocarbon activity in an area affected by boundary and jurisdictional disputes since the mid-1990s.

Oil and Gas Exploration in Border Areas

Crude oil and natural gas are hydrocarbons found in sedimentary basins and are extracted through drilling and production systems. The Assam-Nagaland border region has remained underutilised for petroleum activity for several decades because of unresolved territorial issues.

Revenue Sharing and Production Potential

The MoU includes a 50:50 revenue-sharing arrangement between Assam and Nagaland for extracted oil and gas. Union Home Minister Amit Shah stated that the existing extraction capacity of 1,000 to 1,500 barrels per day could rise more than tenfold, and one field could yield over Rs 15,000 crore.

Important Facts for Exams

• Assam is one of India’s older oil-producing states, and Digboi in Assam is associated with early petroleum production in India.
• Natural gas is a fossil fuel and a major input for fertiliser, power generation and industrial use.
• Memorandums of Understanding are non-binding agreements that set out terms for cooperation between governments or institutions.
• Revenue-sharing models are used in resource projects where multiple states or entities have claims over the same area.

Border Resource Development

The pact aims to unlock hydrocarbon potential in six disputed fields along the Assam-Nagaland border. The Chief Minister of Nagaland has also expressed willingness to extend cooperation beyond the initial six fields identified under the MoU.