The Assam government has inked petroleum mining lease (PML) blocks with Oil India Ltd (OIL) on March 29 for the exploration of petroleum products in eight blocks, expecting an annual royalty of about Rs 2,000 crore.
Ananda Kumar Das of the Assam government’s geology and mining department and Agadh Medhi of OIL‘s executive director (border basin) signed the agreement in the presence of state mines and minerals minister Jogen Mohan and other senior officials.
The eight petroleum mining lease blocks are Dibrugarh, Dibrugarh Extn, Hugrijan Extn, Borhapjan, Borhat, Moran, Dumduma Extn and Mechaki Extn.
Minister Jogen Mohan said that the Assam government is expected to receive more than Rs 2,000 crore royalty from OIL annually for the pact.
He told the OIL officials that the Assam government would provide all possible support to the company in its quest for hydrocarbons.
Jogen Mohan requested OIL to enhance the employment generation to the local people.
OIL’s resident chief engineer Prasanta Borkakoty said that the company has planned to ramp up crude oil and gas productions by enhancing its exploration and development programme.