Assam cabinet clears policy to boost oil exploration

The Assam Cabinet has approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, aimed at encouraging fresh exploration for oil and natural gas in the state. Chief Minister Himanta Biswa Sarma said on Tuesday that the policy offers incentives to explorers in areas with geological potential but no confirmed discoveries, warning that existing oil output could fall substantially over the next decade.

Assam currently produces around 4 million metric tonnes of crude oil annually, but Sarma said production is unlikely to rise and may decline over the next 10 years. He noted that new discoveries have stalled, with Oil India and ONGC largely extracting from older wells, and drilling depths have increased from about 300 metres to 900-1,000 metres. The chief minister added that Assam has not seen significant exploration for new wells in nearly two decades.

The policy provides what Sarma called 'small, symbolic benefits' to explorers bringing in rigs, particularly in areas like North Assam where oil is suspected but unproven. The move comes as the state struggles to identify new natural resources, with only limestone discovered in recent years.