Assam Chief Minister Himanta Biswa Sarma described the discovery as a major step forward in energy security and economic resilience.
Guwahati: Assam is poised to become the first state government in India to directly participate in oil production, a significant milestone for the country’s energy sector. This significant development follows the major discovery of hydrocarbons at the Namrup Borhat-1 well in Dibrugarh district, where the Assam government holds a substantial stake in partnership with Oil India Limited (OIL).
Sharing a post on X(previously Twitter), Assam Chief Minister Himanta Biswa Sarma said,”@OilIndiaLimited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake.” Furthermore, he described the discovery as a major step forward in energy security and economic resilience.
Which company is partnering with the Assam government for oil production?
This discovery ensures successful investment in oil drilling and contribution to national energy security, the CM added. He wrote on social media, “This discovery makes Assam the first state govt to be a direct oil producer, makes exploration efforts successful, empowers Assam with revenue & royalty and ensures steady availability of energy for the country.” Sarma described the discovery as a ”proud moment”.
A major step forward in energy security and economic resilience.@OilIndiaLimited has discovered hydrocarbon presence in Namrup Borhat-1 well, a well where Govt of Assam holds a significant stake.
This discovery makes Assam the first State Govt to be a direct oil producer,… pic.twitter.com/UXyzWtRBpx
— Himanta Biswa Sarma (@himantabiswa) July 16, 2025
Why is this discovery considered a game-changer for the state?
Assam has played a vital role in the oil and gas story in India for generations. It is home to India’s first oil well at Digboi, and has historically been a very important location for crude oil extraction. Assam remains important in crude oil production in India. In the financial year 2023-24, Assam produced 4,361 thousand metric tonnes (TMT) of crude oil, which is the third highest in the country, after Rajasthan and Gujarat, according to the Ministry of Petroleum and Natural Gas.
From 2021-22 and 2023-24, India’s total crude oil production was 88,223 thousand metric tonnes (TMT). Assam accounted for a total of 12,518 TMT, which was one of the top onshore production states in India.
Rajasthan produced the highest at 15,380 TMT, followed by Gujarat at 14,425 TMT. The other states, Tamil Nadu (985 TMT), Andhra Pradesh (688 TMT), Arunachal Pradesh (147 TMT) and West Bengal (just 0.06 TMT), were well below these three states. Total national production from offshore fields was 44,078 TMT in the same time frame.
Assam’s contribution to the oil sector previously was only supplying natural resources to the license holders and earning royalties. Now that the state is involved in upstream exploration and production, Assam is not only a supplier but a co-producer with the exploration and production companies, thus sharing in the profits and risks of oil extraction.
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