The work of petroleum exploration in Dailekh has been stalled for two years as the contract winner Chinese team which had gone back to their country did not return in nearly two years.
An agreement reached between Nepal and China should have already submitted the full report of petroleum exploration. However, the Chinese team, which studied the initial phase in mid-2020, did not return to Nepal after returning home citing the rise in Corona virus.
Since then, China has not sent its team to Nepal, citing Corona. About six months ago, the Chinese team sent a report of the on-site study based on the initial phase report to the Department of Mines and Geology.
In February 2020, an agreement was reached between the Department of Mines and Geology and the Chinese government’s Geological Survey Company for financial and technical assistance of Rs 2.4 billion for exploration and excavation.
As per the agreement, the Chinese team were required to complete the first phase of exploration which included geological and petroleum survey in the Dailekh area and to identify the drilling site in the district. And second phase of exploration required surveying whole country to study the availability of petroleum products in the country.
Availability of petroleum products could only be known after drilling work is completed. Although the Chinese technical and expert team which was scheduled to arrive on April 11, 2021, has shown not returned yet.
It is said that Bhairavi Municipality of Dailekh, Dullu Municipality, Dungeshwor Municipality, Chamunda Bindrasaini Municipality, Mahabu Municipality and some areas of Narayan Municipality have plenty of the valuable fossil fuel in the country. Nepal and China had agreed to cooperate in the exploration and extraction of petroleum products in April 2016.