Dailekh, July 14: Expensive equipment installed for the natural gas and petroleum exploration project at Jaljale in Bhairabi Rural Municipality–1, Dailekh, has begun to rust after remaining unused for an extended period due to delays in launching the project’s second phase.
Although the first phase of drilling has been completed and the study report submitted to the Government of Nepal, work on the next phase of the nationally significant project has yet to begin. As a result, drilling machinery, equipment and other infrastructure installed at the project site have remained idle and are gradually deteriorating.
According to a report submitted by the China Geological Survey, the Jaljale area is estimated to contain approximately 80.7 billion cubic metres of natural gas, making it one of Nepal’s most promising energy reserves.
The exploration project, which began in 2019, successfully completed Nepal’s deepest-ever drilling operation, reaching a depth of 4,013 metres. However, despite completing the first phase, the project has remained stalled, leaving costly equipment exposed to weather and damage.
Officials under the Ministry of Industry, Commerce and Supplies said preparations are underway to move the project forward, but no definite timeline has been announced for the second phase.
According to the Petroleum Exploration Project, further work has been delayed because the Chinese side has yet to communicate its decision regarding the implementation of the second phase, despite receiving the final report from the initial exploration.
Narendra Bahadur Thapa, President of the Dailekh Chamber of Commerce and Industry, said some of the equipment has already started rusting due to prolonged inactivity and inadequate maintenance. He said billions of rupees invested in the project remain idle and urged the government to take immediate steps to resume petroleum exploration and eventually begin commercial extraction.
According to Thapa, petroleum production would significantly transform Dailekh by creating employment opportunities, improving infrastructure and stimulating local economic activity. He also called on the government to treat the project as a national priority and accelerate its implementation.
Under an agreement signed between the Governments of Nepal and China in 2019, petroleum exploration began in the Shirsthan, Nabhisthan and Padukasthan areas of Dailekh. The exploration at Jaljale, conducted on 45 ropanis of government-owned land, was completed with approximately Rs. 2.17 billion in grant assistance from the Chinese government.
While the discovery has raised hopes among local residents for future petroleum production, uncertainty over the start of the second phase has increased concerns about the future of one of Nepal’s most important energy exploration projects.
The project was formally inaugurated on July 1, 2019, by then Minister for Industry, Commerce and Supplies Matrika Prasad Yadav during the government led by then Prime Minister KP Sharma Oli at Nabhisthan in Dailekh. #nepal
