KATHMANDU: The Department of Mines and Geology has begun preliminary work for a second-phase agreement aimed at advancing petroleum production in Nepal.

The department is undertaking internal preparations for a follow-up agreement with the China Geological Survey to facilitate the commercial extraction of petroleum resources.

According to the Petroleum Exploration Project, which is being implemented with technical support from the Chinese government, the first phase of drilling and exploration activities has been successfully completed at Jaljale in Bhairabi Rural Municipality-1, Dailekh district.

Following the completion of drilling and exploration works, the department has started coordinating with the government to obtain the necessary approvals and support required for the next agreement, which will focus on initiating commercial production.