Nepal Prepares for Next Phase of Petroleum Exploration in Dailekh

The Department of Mines and Geology has begun preparations for a second-phase agreement aimed at advancing petroleum production in western Nepal’s Dailekh district.

The department is preparing for an additional agreement with the China Geological Survey to move towards commercial extraction following the completion of initial drilling and exploration work.

The petroleum exploration project, being carried out with technical assistance from the Chinese government, has completed the first phase of drilling and exploration at Jaljale in Bhairavi Rural Municipality-1 of Dailekh.

According to the department, coordination has already begun with the government to secure the necessary support and facilitate the agreement required for commercial production.

Acting Chief of the Petroleum Exploration Project Dharma Raj Khadka said recent studies conducted in collaboration with Chinese technical teams included seismic surveys, geological surveys, magnetotelluric surveys and geochemical sampling.

The department stated that sample testing carried out to assess petroleum reserves and production potential has confirmed the possibility of petroleum and natural gas deposits in the area.

Officials believe successful implementation of the project could significantly reduce Nepal’s heavy spending on imported petroleum products and natural gas.

The project is also expected to contribute to import substitution and support the country’s broader economic development goals.