Department of Mines and Geology Prepares for Second Phase of Petroleum Exploration Agreement with China

Kathmandu. The Department of Mines and Geology has prepared for the second phase of the agreement for petroleum production. The department has made internal preparations for a further agreement between the department and the China Geological Survey for commercial excavation.

The petroleum exploration project, operated with the technical assistance of the Chinese government for the domestic production of petroleum products, has completed the first phase of 'drilling', exploration work, etc., in Jajale, Bhairabi Rural Municipality-1, Dailekh. The department, which has completed drilling and exploration work for petroleum products, has coordinated with the government to obtain the necessary support for the agreement to start commercial production.

The department, in collaboration with the Chinese technical team, has recently completed seismic survey, geological survey, magneto telluric survey, and geo-chemical sampling survey, informed Dharma Raj Khadka, acting chief of the petroleum exploration project.

The sample testing conducted for the study of petroleum product production and storage volume has also confirmed the possibility of petrol and natural gas.

If the project is implemented successfully, a large amount of money being spent on the import of petrol and natural gas can be reduced. This will help in import substitution as well as the economic development of the country.