Based on geological, geochemical, and geophysical studies and research conducted by the department under the petroleum exploration project, the areas in southern Nepal covered by the Terai and Chure mountain ranges have shown potential for petroleum resources. Accordingly, for petroleum operations, a total area of 44,220 square kilometers extending from west to east has been divided into ten (10) exploration blocks of approximately equal size.

In accordance with the Petroleum Act and its regulations, the project has been carrying out promotional activities by inviting tenders for these exploration blocks and facilitating petroleum exploration through international oil and gas companies.

The project has published colored geological maps of all ten exploration blocks at a scale of 1:250,000. In addition, a Data Sales Package has been prepared incorporating various geological, geophysical, geochemical, and drilling data collected from exploration programs conducted to date.