Govt to expedite petroleum exploration

The government has decided to expedite the petroleum exploration works as geological, geophysical and geochemical surveys carried out in different parts of the country have shown positive results.

The government had recently signed a petroleum exploration agreement with two international companies - BB Champion based in USA and EABG Company based in UAE - based on the survey reports, RSS quoted Petroleum Exploration Promotion Project chief Rajendra Prasad Khanal as saying.

As per the agreement, the foreign companies will conduct the exploration under the Nepal Petroleum Act-1983 and Petroleum Regulation-1985, Khanal added.

After the confirmation of potential commercial production of petroleum products in the selected areas, further agreement would be signed with concerned companies for investment.

The two companies are given four years for preliminary study in Janakpur, Rajbiraj, Biratnagar.

The government has already signed two petroleum agreements with Cairn Energy PLC UK in 2004 for petroleum exploration in Dhangadhi, Karnali, Lumbini, Birgunj and Malangawa.

Likewise, Texana Resources Company, Houstan, Texas, USA has been assigned the exploration works in Nepalgunj and Chitwan blocks since 1998. nepalnews.com