Hydrocarbon Vision 2030 (ஹைட்ரோகார்பன் தொலைநோக்கு ஆவணம் 2030)

5.1.4.3.5 Action area
Based on the issues and challenges identified as above, we propose the following action plan along
with responsibility and timelines.
Table 42: Action plan for disputed area between Nagaland and Assam
Action area - Assam-Nagaland border dispute
Immediate
(0-2 years)
Medium term
(2-5 years)
Long term
(5 years+)
A committee of authorities nominated by the -
MHA/MoPNG and Chief Secretary of Assam &
Nagaland needs to be formed for resolution on these
blocks. A review of royalty structure is required.
MoPNG/MHA
Similar resolution under provision of existing laws for
mutual agreement on starting of production from
NELP/PSC regime and share of royalty between both
the states.
MoPNG/MHA
MoPNG to support ONGC in case of financial burden
for increased royalty under PSC agreement. ONGC to
submit the proposal to DGH for the same
ONGC/DGH
The central and state governments need to initiate
action to resolve the boundary issues within states as
boundary issues between Assam-Nagaland, Manipur-
Nagaland and Assam-Arunachal Pradesh have been
instrumental in delaying exploration activities and in
some cases the issue has led to abandonment of
exploration activities by the E&P operator.
Chief
Secretary-
Government
of India/
Assam/Nagal
and/
5.1.4.4 Cost of E&P in NER
The capital and operating cost of production of oil and gas plays a significant role in the momentum of
E&P activity in a region. The section compares capital and operating costs in NER with rest of India –
onshore and offshore blocks.
5.1.4.4.1 Exploration cost
Exploration costs contribute for about 20% of the overall cost incurred for development of an oil and
gas field. Exploration cost is the initial cost that is incurred in an oil and gas field, which helps in
ascertaining the resource potential of the field. Based on inputs provided by DGH, we have analysed
the exploration costs in NER and compared it with the exploration cost in KG Basin. Major cost items
incurred in the exploration phase are:
Survey costs
Exploratory well drilling costs
General & administrative (G&A) costs
The analysis of these cost items revealed that exploratory well drilling costs in NER are typically
higher by 20-25%, while G&A costs were higher by close to 220%. Survey and exploration study
costs were lower in NER by 28% than that in KG basin. The higher/(lower) costs have been computed
by calculating the average of costs provided by DGH in NER and the percentage by which this cost is
higher/(lower) from the other block in rest of India.
Cost item
Exploratory well drilling
and testing cost per
metre
G&A cost per well
Survey and Exploration
studies
% higher or (%) lower 23% 220% (28%)
than in NER
Source: DHG, CRISIL Infrastructure Advisory Analysis
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