Guwahati, Sep 24 (IANS) The S.S. Khaplang faction of the National Socialist Council of Nagaland (NSCN-K) Sunday banned the Oil and Natural Gas Corporation (ONGC) from carrying out any exploration work in the northeastern state of Nagaland.

"We shall not allow the ONGC to extract oil or carry out other exploratory works in Nagaland with immediate effect," NSCN-K spokesman Kughalo Mulatonu told IANS by telephone from an undisclosed location.

Nagaland is virtually sitting on a multi-million dollar oil reserve with rough estimates indicating that the state has the potential to yield some 600 million tonnes of petroleum.

"The government of India must treat the NSCN faction led by Isak Chisi Swu and Thuingaleng Muivah as terrorist organisation or else the ban on the ONGC would remain," the rebel leader said.

The two NSCN factions are engaged in a bitter fratricidal war over territorial supremacy since their split in 1988.

The NSCN-K accuses the rival faction of banning ONGC's operation in 1994 and selling all their equipment.

"Let the Indian government file a lawsuit against the NSCN-IM for the loss incurred by the ONGC. We want ONGC to come and work here so that our people get employment. But then we want the government to first book the NSCN-IM and until such time the ban on the ONGC would continue," Mulatonu said.

The ban comes after the Nagaland government recently assured the ONGC of all support and security cover to resume operations in the state.

The ONGC, India's leading oil exploration firm, were forced to withdraw from Nagaland in 1994 after threats from the NSCN-IM and other tribal bodies. ONGC had earlier carried out exploratory works in Nagaland's Wokha district and now plans to work in Mon and Dimapur districts.

There is no immediate reaction from the ONGC on the NSCN-K ban.

The NSCN-IM too welcomed the Nagaland government's decision to allow the ONGC to resume operations saying the state want to become self-reliant.