Petroleum and Gas Reserves in Dailekh Show Huge Potential
Exploration and Commercial Production to Gain Momentum
Hamrakura
Published 2025 Sep 02 Tuesday
Dailekh: After confirming large reserves of petroleum products and natural gas in the Jalajle area of Bhairavi Rural Municipality-1, exploration and commercial production activities have begun to accelerate. Although current field activity remains limited, the Armed Police Force has been deployed to provide security in the exploration zone.
Reserves Could Meet Nepal’s Needs for 50 Years
A study conducted by the China Geological Survey Company, under the leadership of Nepal’s Department of Mines and Geology, has revealed that the first well at Jalajle alone contains 1.12 billion cubic meters of methane gas. Preliminary estimates suggest that four wells in the area may hold a combined 430 billion cubic meters of gas, enough to meet Nepal’s gas requirements for up to five decades.
Final Report Expected by December 2025
According to Prakash Luintel, information officer and geologist at the Petroleum Exploration Project, the Chinese research team will now analyze samples and prepare a final report by December 2025. The move toward commercial production will begin only after the final report is submitted.
Government Forms Committee for Feasibility Study
To prepare for commercial production, the government has formed a four-member committee led by Binitamani Upadhyay, Director of Nepal Oil Corporation. The team is assessing gas utilization, infrastructure requirements, production feasibility, and cost. Upadhyay confirmed that the committee has already conducted an on-site observation in Jalajle.
Project Backed by Nepal-China Agreement
Although Dailekh has long been believed to contain petroleum deposits, extraction efforts were prioritized after the 2015 blockade. The project, initiated under a 2018 Nepal-China agreement, is being carried out with full financial and technical support from China and an estimated cost of Rs 2.5 billion. The discovery has sparked excitement among citizens across the country, especially in Dailekh.