Government of Nepal and the Government of the People's Republic of China had signed on an agreement for the Nepal Petroleum Exploration during the China Visit by the Prime Minister of Nepal, Rt. Hon. Mr. KP Sharma Oil on 2016. The Government of China agrees to help to implement the "Oil and Gas Resources Survey Project". Director General, Mr. Ram Prasad Ghimire, Department of Mines and Geology, Ministry of Industry, Commerce and Supplies (Government of Nepal-Nepalese side) and Vice president Dr. Wang Kun of China Geological Survey, Ministry of Natural Resources of the People's Republic of China (Government of People's Republic of China- Chinese side) have agreed to sign “Implementation Agreement of China-Aid on Oil and Gas Resources Survey Project in NEPAL” dated 2019-02-28.

The agreement period is about 3 years. In reference to the agreement, first phase work plan includes Geological and Petroleum Geological mapping in Tansen and Dailekh area, Geochemical Survey in Dailekh area, Magnetotelluric Survey in Dailekh area and different part of Nepal, and 2D-Seismic Survey in Dailekh area. Second phase work plan is to identify the drilling site and completion of drilling work. Finally at the third phase work plan includes overall study of petroleum geological condition and submit the final report to the Department of Mines and Geology. The first phase work such as Petroleum Geological Mapping and Geological Mapping (Dailekh area), Geochemical Sampling (Dailekh area), Magnetotelluric Survey (Dailekh, surkhet and different part of Nepal) and Seismic Survey (Dailekh area) has been completed.