Scottish oil giant Cairn Energy and United States-based Texana Resources have agreed with Nepal government to begin digging for oil in the Chure range between Biratnagar in the East and Mahakali region in the West. Earlier, the Department of Mines and Geology had identified 10 spots in the Chure range and the Tarai belt as â€˜petroleum blocksâ€™,
the claim later backed by Cairn prospectors.
Although the exact amount of oil in Nepal is unknown, according to experts, the grounds are
likely to yield the black gold for around eight years. The two companies are waiting for the government to pave the way for their entry by providing enough security in the areas.
The two oil companies will bear all costs incurred during excavation and profits will be split
evenly between the oil companies and Nepal. If two well-established names in the field of oil have decided to explore in Nepal, there is expectation of something good turning up. Wouldnâ€™t it be wonderful if Nepal could dig up her own oil, not having to rely on the imports? What a mouth-watering prospect for the cash-strapped new republic! But before Nepalis get giddy about oil windfall, it is important to bear in mind that while oil money will be useful in reconstruction, it may do more harm than good to a country already accustomed to easy money through remittances.