About Petroleum

Nepal, a small Himalayan country with a dimension of about 800 km length and 150 to 230 km width is situated between India and China.

Physiographically, the country can be divided into four parallel zones conforming more or less with the geological zones namely Terai Plain (Indo-Gangetic Plain), Siwalik Range, Lesser Himalaya and Higher Himalaya Lying from south to north. The southern part of the country lies in the foreland of the Nepal Himalaya containing sedimentary basins which are important for hydrocarbon exploration. The Terai plain and Siwalik Range of Nepal have been divided into 10 exploration blocks, each of approximately 5,000 sq. km. area.

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Exploration Opportunities

Petroleum Exploration Promotion Project (PEPP) has conducted a series of geological, geophysical, and geochemical surveys in the southern part of Nepal with bilateral and multilateral cooperation in the last 30 years.

Airborne Magnetic Survey, CGG 48,000 sq. km Photo-geological study, hunting Geology and Geophysics Ltd. 60,000 sq. km Reflection seismic survey, CGG Petro-Canada and Shell Nepal 5,253 line km Gravity Survey, ELS Consulting Entire Terai Region Exploration Well (Block 10, Biratnagar), Shell Nepal 3520 m depth Source and Seal Study, Alconsult Inc. Nepal Geological Map Publication (10 blocks), PEPP/DMG 50,000 sq. km.

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Petroleum Legislation

The principle law governing the petroleum operations in Nepal is the Nepal Petroleum Act 2040 (1983), which is supplemented by Petroleum Regulation 2041 (1985) with amendments in 1985, 1989 and 1994. The act grants rights and obligations to contractors such as:

Right to export entitlements of petroleum product. 1. Exemption from all taxes and fees except for a royalty of 12.5% and income tax 30%, annual surface rentals and miscellaneous fees of general application. 2. Exemption from custom duties on imported goods 3. Foreign currency facilities and right to repatriate funds without restrictions 4. Right to employ foreign nationals, and 5. Right to use land

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Project Activities

PEPP has its own Data Center, Which is open for oil companies. The Data Center contains geological, geochemical, seismic, gravity and drilling data relevant to the petroleum exploration works in Nepal. The database is divided into different Data sales packages (DSPs) "A" through "U" .

Data package "A", named "General report" is a pre-requisite for companies wishing to purchase other data or to lodge a formal bid for exploration acreages. The total price of Data Packages is US$ 1,95,000.00

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