Petroleum reserves confirmed in Nepal
Petroleum reserves have been confirmed in Jaljale, located in Pairavi Rural Municipality-1 of Dailekh district, following the completion of a drilling process on January 4 (Poush 20). The Department of Mines and Geology revealed that drilling reached a depth of 4,013 meters, uncovering natural gases and confirming the presence of petroleum reserves. This marks a significant milestone in Nepal’s petroleum exploration history, with earlier efforts yielding inconclusive results. Drilling in Dailekh began last April (Baisakh) with financial and technical assistance from China, as part of a three-phase agreement signed in 2019. In the third phase, rock samples collected during drilling will be tested in laboratories, and a detailed report will be provided by China to estimate the quantity and commercial viability of the reserves.
Senior geologist Ganeshnath Tripathi stated that while crude oil was not discovered, natural gas was found, which is also a valuable petroleum resource with growing global demand due to its lower environmental impact compared to oil. Tripathi noted that further evaluation will determine whether the reserves can be commercially exploited, with production-sharing contracts being an option for international investors under Nepal’s existing petroleum laws. Although past exploration efforts, like the drilling in Morang’s Bahuni in 1986, failed to find petroleum, the confirmed reserves in Dailekh offer hope for Nepal’s energy sector, potentially paving the way for future development and utilization of natural gas resources.
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