Lease deed for petroleum mining block signed in Tinsukia district

STAFF REPORTER

GUWAHATI: The State Government struck a deal with Hindustan Oil Exploration Company Ltd (HOEC), Oil India Ltd (OIL) and Indian Oil Corporation Ltd (IOCL) to lease out the Dirok Block in the Tinsukia district for the commercial exploration of oil and gas. The State Government expects to get around Rs 450 crore as revenue from the block.

State Mines and Mineral Minister Jogen Mohan was present at the signing of the agreement. He said, "We will provide all possible support to OIL, IOCL and HOEC in their quest for hydrocarbons."

Jogen Mohan said that the deal would enhance revenue to the state exchequer and bring about prosperity to the state. He stressed the need for self-reliance of the nation in energy and economic growth.

State Geology and Mining Director Ananda Kumar Das, Debasis Gupta from HOEC, Abhijit Borgohain from OIL and K Mohan from IOCL signed the 20-year lease deed.

They all expressed their sincere gratitude to the State Government for its assurance of support toward E & P activities of HOEC, IOCL and OIL.

The production of condensate and natural gas is going on in Dirok Block. Since 2017, the State Government got around Rs 180-crore royalty from this block. It now expects to receive over Rs 450 crore as royalty from it.

The State Government has already signed lease deals with OIL for eight petroleum mining blocks.

The deal means full-scale commercial production of oil and gas in an area. It grants the holders exclusive rights to explore, prospect, produce and operate market activities for at least twenty years.

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