Assam's New Hydrocarbon Policy Aims to Boost Oil and Gas Exploration

The Assam Cabinet has introduced the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, aimed at revitalizing oil and gas exploration in the state. Chief Minister Himanta Biswa Sarma emphasized the need for incentives to encourage exploration in areas with potential hydrocarbon reserves. With current oil production facing a decline, this policy seeks to attract new investments and exploration efforts, particularly in regions that have not been thoroughly explored for hydrocarbons in nearly two decades. The initiative aims to ensure a sustainable energy future for Assam.

By Narendra Chaudhary Aug 18, 2026, 22:55 IST

Introduction to the New Policy

Geleki Oilfield in Nazira with pipelines interconnecting the ONGC oil and gas wells with the Gas Gathering Stations (GGS) (Photo: Meil)

Guwahati, Aug 18: The Assam Cabinet has given the green light to the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, aimed at promoting new oil and natural gas exploration throughout the state.

Incentives for Exploration

During a press conference on Tuesday, Chief Minister Himanta Biswa Sarma explained that the policy is designed to offer incentives to stimulate exploration in regions where hydrocarbons have yet to be found, but geological data indicates potential.

“Our goal is to provide small, symbolic benefits to prospective explorers, signaling that the state government is supportive,” Sarma stated following the Cabinet meeting.

Concerns Over Declining Oil Production

This initiative comes in light of concerns regarding the diminishing prospects for Assam’s current oil production, with Sarma cautioning that output could significantly decrease over the next decade.

Currently, Assam produces approximately 4 million metric tonnes of crude oil, but Sarma noted that production is unlikely to rise and may start to decline in the coming years.

“New oil well discoveries in Assam are not occurring. The extraction efforts by Oil India and ONGC primarily rely on previously discovered wells,” he added.

Challenges in Extraction

Sarma pointed out that extracting from existing fields is becoming increasingly challenging, as drilling depths have escalated from around 300 meters to between 900 and 1,000 meters or more.

He mentioned that the unpredictable nature of exploration has deterred agencies from pursuing new exploration in areas where oil presence is not confirmed.

“North Assam is believed to have oil, yet dedicated exploration has not been conducted there,” he remarked.

Historical Context and Future Prospects

The Chief Minister highlighted that Assam has not experienced significant exploration for new oil and natural gas wells in nearly two decades.

Thus, the new policy aims to facilitate exploration activities statewide by providing incentives, especially in regions with potential hydrocarbon reserves but no verified discoveries.

“We will offer small incentives to those who bring in rigs and engage in exploration,” Sarma confirmed.

Additionally, he noted that Assam has struggled to identify significant new natural resources in recent years, aside from limestone found in Umrangso.