Burning burning. Jaljale area of Bhairabi rural municipality-1 in Dailekh district, which has a lot of movement of Chinese and Nepali technicians during petroleum exploration, is deserted these days. Armed Police Force Nepal is providing security to the petroleum drilling area. The whole country is excited by the news of the confirmation of large storage of petroleum products in Dailekh.

Investigations by the Geological Survey Company of China led by the Department of Mines and Geology have confirmed the presence of a huge storage of petroleum products and natural gas in the Jaljale area. The first drilling work, which started on May 27, 2018 BS, was taken to a depth of 4,013 meters. The samples collected from it have been found to have 1.12 billion cubic meters of methane gas in storage.

This is the preliminary result of only the first of the four possible wells. According to the preliminary estimates of the remaining three wells, a total of 430 billion cubic meters of gas is estimated to be in the jaljal area. It has the potential to meet Nepal’s gas needs for about 50 years.

After the discovery of such a large petroleum reserve in Nepal, there is widespread concern about where its excavation and commercial production work has reached. Information Officer of petroleum exploration project and geologist Prakash Luitel said That Nepal is waiting for the detailed report of the petroleum sample. The Chinese team is currently preparing for the sample analysis and final report.

According to him, the final report of petroleum exploration will be received by December 2025. From the final report, various facts including the results of petroleum products will be obtained. “We are waiting for the final report with detailed data of geophysical and geological studies,” said Department’s geologist Luitel. ’

The government has also expressed its determination to expedite the petroleum exploration work at the site. Prime Minister KP Sharma Oli has also directed to proceed with the commercial production process from the petroleum project.

The government has formed a four-member committee under the coordination of Nepal Oil Corporation (NOC) Director Binitmani Upadhyay to study the feasibility of commercial production of petroleum products. Senior Divisional Geologist at the Department of Mines and Geology Dharma Raj Khadka, Project’s Manish Karna and Assistant Manager of the Corporation Dipti Poudel are the members of the committee formed by the decision of Minister for Industry, Commerce and Supplies Damodar Bhandari.

The ministry has formed the committee at the initiative of the corporation. Executive Director of the Corporation Chandika Prasad Bhatta said that the committee would study the feasibility of utilizing natural gas. “The committee is studying the purposes for which the gas seen in the jaljale area can be used and how to use it,” he said. The corporation is awaiting instructions from the government based on the study report.

The committee has already completed on-site inspection of the petroleum exploration area. Committee coordinator Upadhyay said, “The committee has started the study within the jurisdiction given by the ministry and all the members of the committee have reached Dailekh in connection with the site visit.” The committee has also studied the possibility of setting up a chemical fertilizer factory in Surkhet along with Dailekh.

“Many things will be known later as some subjects are fully technical,” he said, “but we are studying what can be done in the course of the responsibility given to us initially.” The committee is also preparing to discuss with petroleum experts, scholars and others about the possibility of commercial production of natural gas. The committee has been given the responsibility to study the utilization of gas, commercial production, the need and cost of necessary infrastructure.

The petroleum exploration work started after the government-to-government agreement signed between Nepal and China in 2019. The project has been started by allocating 45 ropanis of land in Jaljale area for exploration purposes. This is the deepest and most scientifically completed exploration project in Nepal so far.

For locals, the issue of leaking gas and oil-like substances from the ground is not new. Although it is already estimated that petroleum products are present in different places of Dailekh, efforts have been made since 2036 BS to scientifically confirm it. The government has initiated the process of extracting the country’s energy sources after the fuel crisis across the country due to india’s undeclared blockade in 2072 BS.

Nepal and China had signed an agreement for petroleum exploration in February 2017. In the initial investigation, Nepali and Chinese technicians confirmed that the gas flowing continuously in Shirsthan and Navisthan areas of Dailekh was petroleum products. According to the technicians, there are petrol and gas mines in six places of Dailekh.

A survey conducted a long time ago also found that there was a possibility of petroleum products or gas here. The current project is a fully funded pilot project of China. It is operated with the financial and technical support of the Geological Survey of the Chinese government. Its initial cost was estimated at Rs 2.5 billion. The cost had also increased due to delay in implementation due to various reasons, including the COVID-19 pandemic.

The Department of Mines and Geology had established the ‘Petroleum Exploration Promotion Project’ to facilitate land acquisition, expansion of road and electricity access and administrative coordination. The process of petroleum exploration had the full cooperation and support of the local people’s representatives, administrative machinery and the general public.

With the success of the project, not only the people of Dailekh but the entire country has become excited. It is expected that due to the human resources involved in excavation, processing, supply chain and technical work, employment opportunities will increase at the local level and create an industry-friendly environment.