Nepal, situated in central Asia between China and India, features the Terai plain in its southern region, about 20 to 40 kilometers wide. This plain, part of the Indo-Gangetic plain, lies a few hundred meters above sea level. The Terai and Siwalik areas, located in the foreland of the Nepal Himalayas, boast sedimentary basins ideal for petroleum exploration due to suitable structural traps. These regions are easily accessible within Nepal, thanks to a well-developed infrastructure network including roads and electricity lines.

Evidence of oil and gas seepages has been found across Nepal, mainly north of the Main Boundary Thrust (MBT). Seepages, like those in Dailekh in western Nepal, were first analyzed in the 1960s, with more detailed studies in 1993. The ongoing exploration efforts are symbolized by a gas seep depicted in the region.

Formal petroleum exploration began in 1997 with the Department of Mines and Geology’s Airborne Magnetic Survey conducted in 1978-79 over an extensive area of 48,000 square kilometers, supported by the IDA/World Bank. This survey led to the establishment of the Petroleum Exploration Promotion Project by the Government of Nepal in 1982, highlighting Nepal’s commitment to harnessing its geological potential for hydrocarbon exploration.

A series of geological, geochemical, and geophysical works were carried out after the completion of the aeromagnetic and seismic reflection survey in a regional grid pattern by the Compagnie Générale de Géophysique (CGG) and Petro-Canada (over 3,000-line km. Hunting Geology and Geophysics Ltd. conducted a photogeological study over a 60,000 sq. km area of southern Nepal. It has been useful to establish the structures in the Siwalik belt. Terai and Siwaliks have been divided into 10 exploration blocks, each of approximately 5,000 sq. km in area. These blocks were opened for bidding exploration acreage in 1985 for the first time. Read More…..