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Expensive equipment installed at the natural gas and petroleum exploration project in Jaljale of Bhairabi Rural Municipality-1, Dailekh, have started rusting as the second phase of the project has not begun.

Although the first phase of drilling has been completed and the report has been submitted to the government, the major activities under the second phase have not moved ahead.

As a result, the costly equipment kept at the project site has remained unused and is gradually deteriorating.

According to the study report submitted to the government by China Geological Survey, the Jaljale area has a potential reserve of around 80.7 billion cubic metres of natural gas.

As part of the study that began in 2019, the country’s deepest drilling, reaching a depth of 4,013 metres, has already been completed. However, delays in moving forward with the national pride project have left expensive equipment idle and exposed to damage.

Agencies under the Ministry of Industry, Commerce and Supplies have said that preparations are under way to move the process forward, but no clear timeline has been announced.

As the project has remained stalled for a long time, drilling machines, equipment and structures installed at the exploration site have been left unused.

The Petroleum Exploration Project said the second phase could not proceed as a decision from the Chinese side regarding the next phase has not been received despite the completion of the first phase and submission of the report.

Chairman of the Dailekh Chamber of Commerce and Industry Narendra Bahadur Thapa said some equipment had started rusting due to the delay in starting the second phase and the lack of maintenance.

He said billions of rupees invested in the project were being held up and urged the government to take immediate steps to resume petroleum exploration and extraction activities.

He said the commencement of petroleum extraction would bring major changes to Dailekh through employment opportunities, infrastructure development and increased economic activities.

He also urged the government to prioritise the project at the national level and expedite its implementation.

Under an agreement signed between the governments of Nepal and China in 2019, petroleum research was initiated in the Shirsthan, Nabhisthan and Padukasthan areas of Dailekh.

The study conducted on 45 ropanis of government land at Jaljale was completed with a grant assistance of around Rs. 2.17 billion from the Chinese government.

Although expectations among locals have been rising, uncertainty remains over when the second phase of work will begin, increasing concerns over the future of this nationally important project.

The project was formally inaugurated on July 1, 2019 by a team led by then Minister for Industry, Commerce and Supplies Matrika Prasad Yadav from the then government headed by Prime Minister KP Sharma Oli, at Nabhisthan in Dailekh.

Rising Nepal