NOC Seeks Authority Over Dailekh Natural Gas Reserve

Nepal Oil Corporation (NOC) has said that recently confirmed domestic natural gas reserves should fall under its authority.

Speaking at NOC’s 56th anniversary celebrations on Saturday, January 10, Managing Director Chandika Prasad Bhatta said the operation and management of the natural gas reserve discovered in Dailekh should be entrusted to the state-owned corporation. Minister for Industry, Commerce and Supplies Anil Kumar Sinha was among the attendees.

Bhatta said NOC plans to bring the Dailekh natural gas reserve under its control and operate it through public–private partnerships or other suitable modalities. He added that the corporation is also prioritising green energy and alternative fuels, including biomass.

Preliminary exploration carried out by Chinese technicians in Bhairabi Rural Municipality–1 of Dailekh district has confirmed an estimated 112.1 billion cubic metres of natural gas. The exploration required the acquisition of 45 ropani of land in the Jaljale area.

The reserve is larger than the 75 billion cubic metres of natural gas discovered last year in Turkey’s Goktepe field in the Black Sea.

Nepal and China signed an agreement on March 23, 2016, to explore petroleum resources in Nepal. Nine years later, the Dailekh site was confirmed to have a significant natural gas deposit. The exploration involved the deepest drilling ever conducted in Nepal, reaching a depth of 4,013 metres.

Additionally, Bhatta informed NOC conducted petroleum trade worth Rs 360 billion in the last fiscal year 2024/25, contributing Rs 124 billion in revenue to the government. The corporation earned a profit of Rs 13.6 billion during the period.

He added that preparations are under way to issue guidelines for ethanol blending, following a government policy decision.

NOC is responsible for the sale and distribution of petrol, diesel, kerosene, liquefied petroleum gas and aviation fuel across the country.

On the same day, Minister Sinha inaugurated NOC’s new head office at Babarmahal, Kathmandu. The corporation said the building was constructed at a cost of Rs 700 million.