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Assam strikes oil, first state to hold stake in crude production

Assam has struck hydrocarbons in Dibrugarh’s Namrup Borhat-1 well. CM Sarma says the state is now India’s first direct oil producer with stakes in drilling operations.

News Arena Network - Guwahati - UPDATED: July 16, 2025, 12:40 PM - 2 min read

Oil exploration underway at the Namrup Borhat-1 well in Assam’s Dibrugarh district, where the state now holds a direct stake in production. (Image: X/Himanta Biswa Sarma)


Assam has added another feather to its cap in the field of energy exploration, with the confirmation of hydrocarbon reserves in the Namrup Borhat-1 well located in Dibrugarh district. Chief Minister Himanta Biswa Sarma on Wednesday announced that Oil India Limited (OIL) had made the discovery at a site in which the state government holds a significant stake.

 

Describing the breakthrough as a “proud moment” and a leap forward for both regional and national energy interests, Sarma said the development marks Assam as the first state government in the country to become a direct producer of crude oil.

 

In a post on X, the chief minister stated, “@OilIndiaLimited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake. This discovery ensures successful investment in oil drilling and contribution to national energy security.”

 

 

He further added, “This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue and royalty, and ensures steady availability of energy for the country.”

Also read: Fifteen days on, ONGC gas leak continues to choke Assam village

 

Oil India Limited, the second-largest national oil and gas company, has been engaged in exploration activities in Upper Assam since the 1950s. While OIL’s headquarters is based in Duliajan, Dibrugarh district has long remained a central site of operations due to its geology and proven reserves.

 

The Namrup region has seen renewed focus in recent years, with advanced drilling technologies and state participation under energy-sharing contracts. The current discovery at Borhat-1 reinforces Assam’s role in bolstering India’s hydrocarbon output, particularly as the country seeks to reduce its import dependence under the National Energy Policy.

 

Assam already hosts major oilfields such as Digboi, one of Asia’s oldest, and recent finds near Baghjan and Mechaki have raised expectations for new production basins. The government has been actively pushing for state equity in exploration projects, allowing Assam to benefit from royalties and profits through direct stakes.

 

Officials from the Assam Hydrocarbon and Energy Company Ltd (AHECL), a state-run entity formed in 2022 to explore partnerships in oil and gas, welcomed the announcement. “This is a validation of our vision to place Assam as a key player in India’s energy architecture,” a senior AHECL official said.

 

The commercial viability of the Borhat-1 find is expected to be assessed in coming months, with test drilling data indicating promising yields. The Ministry of Petroleum and Natural Gas has also been briefed on the development.

 

The chief minister had previously indicated plans to reinvest state earnings from hydrocarbon projects into education, health, and infrastructure in Upper Assam.

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