Tripartite MoU for Mineral Oil Operations in Assam-Nagaland Boundary Areas
In a significant development for India's energy sector and regional cooperation, a tripartite Memorandum of Understanding was signed between the Government of India, Government of Assam, and Government of Nagaland on June 11, 2026, in New Delhi. The agreement was signed in the presence of Union Home Minister and Minister of Cooperation Shri Amit Shah, Union Minister of Petroleum and Natural Gas Shri Hardeep Singh Puri, Assam Chief Minister Dr. Himanta Biswa Sarma, and Nagaland Chief Minister Neiphiu Rio.
The MoU establishes a coordinated framework for facilitating mineral oil operations in the Assam-Nagaland boundary areas, specifically designed to ensure operational continuity, safety and security of personnel and assets, and effective coordination among all stakeholders. The agreement covers identified 'Areas of Interest' and aims to provide greater certainty and stability for ongoing and future hydrocarbon operations in the region.
Key Operational and Economic Implications
According to Union Home Minister Shri Amit Shah, the current extraction capacity in the region stands at 1,000–1,500 barrels per day, but with this agreement, there is potential for this capacity to increase by more than tenfold. Notably, the Nagaland government has agreed to allow oil exploration across the entire state beyond the previously limited six designated fields, representing a significant expansion of exploration rights.
The agreement is expected to open up possibilities for oil and natural gas exploration as well as mineral mining throughout the Northeast region. Home Minister Shah emphasized that the vast reserves of oil, gas, and minerals available in Nagaland will help reduce India's dependence on foreign sources for oil and gas, contributing significantly to national energy security objectives.
Broader Regional Development Context
This agreement is part of the Modi government's broader focus on Northeast development, which has included 12 peace accords signed since 2019 resulting in an approximately 80% reduction in violence across the region. The Home Minister noted that more than 80% of the Northeast has been freed from the Armed Forces (Special Powers) Act (AFSPA), with confidence expressed that AFSPA would be completely withdrawn from the entire Northeast (except possibly one or two states) by next year.
The Ministry of Home Affairs facilitated the discussions leading to the MoU signing in close coordination with the Ministry of Petroleum and Natural Gas and the state governments. The framework is expected to encourage investment in the upstream petroleum sector while safeguarding the interests of all concerned parties, representing what the Home Minister described as an excellent example of cooperative federalism.