Public sector energy giant ONGC has started drilling oil along the inter-state border between Assam and Nagaland in both Jorhat and Golaghat districts.
"We are thankful to the ONGC for carrying out their activities along the border areas. This has also helped in a big way in the economic development of these backward border areas," Upper Assam Commissioner Syed Iftikar Hussain said after inaugurating drilling activities in a new well of the ONGC at Phuloni village in Golaghat district.
The site is located on the disputed "B" sector along the Assam-Nagaland border.
He said the Navaratna company would be paying royalty to Assam for its work along the border.
The oil major has 42 oil wells in both Jorhat and Golaghat district which fall under the Jorhat sector of the company.
These 42 oil wells of the ONGC produce 2 lakh metric tonnes of oil every year and most of these producing wells fall in the disputed sector along the Assam-Nagaland border.
Hussain requested ONGC to involve local villagers in protecting its installations and said this would make them feel that they are stakeholders in the venture.
ONGC Basin Manager of Assam and Assam-Arakan Basin Sudhir Kumar Jain said the company has already spent Rs 15 lakh in the Uriamghat area under its corporate social responsibility schemes and more development activities would be carried out in these areas in the coming days.
He said the company was optimistic about its activities in both the districts and the new well was showing positive signs of producing oil.
Jain said ONGC had also been alloted a block to carry out exploration in the disputed "A" sector along the Assam- Nagaland border but it has not been able to carry out any activity.