Sunday, June 23, 2019

Chinese technical team to conduct petroleum exploration work in Nepal

China is going to conduct petroleum survey in Nepal from next week.
A team of Chinese geological survey experts, who have arrived in Nepal yesterday will examine the potential of petroleum extraction. They are going to conduct geological and petroleum survey to identify spots for drilling works to identify the type and quantity of petroleum reserve in Nepal from June 28, according to the Department of Mines and Geology. “A technical team from China Geological Survey has arrived Nepal yesterday for the petroleum exploration according to the agreement signed between the two countries on February 28 this year in Beijing,” the department said, adding that the Chinese team will visit two locations – Dailekh in western Karnali Province and Tansen in Province 5 – to conduct the technical study as a part of exploration work.
Dailekh and Tansen were among the 10 locations where a joint technical team from Nepal and China had conducted a feasibility study on exploration petroleum products in May 2016.
On August 17, 2017, Nepal and China had formally agreed on exploring petroleum products in Nepal. Likewise, in April 2018, a team from China Geological Survey had observed and conducted a feasibility study in Surkhet, Dailekh and Palpa districts and also in the Chatara-Barahachhetra area of Sunsari district. The government had earlier separated 10 blocks – Dhangadhi, Karnali, Nepalgunj, Lumbini, Chitwan, Birgunj, Malangwa, Janakpur, Rajbiraj and Biratnagar – for exploration of petroleum products in Nepal.
The Cabinet meeting on January 13 had approved a proposal titled ‘Implementation Agreements of China on Oil and Gas Resources Survey Projects in Nepal’ with China. The agreement subsequently paved the way to begin exploration works for petroleum products in the country.
Then, in February, the Department of Mines and Geology had signed an agreement with China Geological Survey – considered as one of the excellent oil mining institutions in the world – to carry out the examination within next three years. “The Chinese experts will divide themselves into three groups to conduct the geological and petroleum survey in both locations – Dailekh and Tansen – and identify the drilling spots,” the department confirmed. “Finding drilling spot is an important part of exploring the petroleum reserves in Nepal as there have been talks of having petroleum resources in Nepal.”
As per the initial study, the team needs to drill to a depth of at least four kilometres to locate any petroleum reserves. However, it has yet to finalise the exact place for the drilling.
After the identification of the spots by the Chinese team, the drilling works will be conducted in the second phase and the type and quantity of petroleum products will be identified in a report to be submitted in the third phase. “The task will be completed in three years and China will cover all costs of the examination,” according to the agreement between the two neighbours.
Nepal's economic growth will get a huge boost, if the commercially viable petroleum products are identified during the drilling.

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