Assam Approves Hydrocarbon Policy 2026 for O&G Exploration in Untapped Areas

The Assam Cabinet has approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, aimed at encouraging exploration for oil and natural gas in areas where hydrocarbons have not yet been discovered.

Chief Minister Himanta Biswa Sarma said the policy was necessitated by the lack of significant new oil discoveries in the state over the past several years. Exploration activities, he said, have largely remained concentrated around existing oil fields, while companies have been reluctant to venture into new areas because of the financial risks associated with unsuccessful drilling.

The primary reason is the high degree of uncertainty involved in exploration. If a company drills in a new area and does not discover oil or gas, it can suffer substantial financial losses,” Sarma said.

The Chief Minister said several areas of Upper Assam are believed to have considerable hydrocarbon potential but have remained underexplored because of the risks involved. He expressed hope that the new policy would facilitate the discovery of fresh oil and natural gas reserves and help prevent a decline in Assam’s oil production over the next decade.

Assam currently produces around 4 million metric tonnes of oil annually, according to Sarma. He said that without new discoveries, increasing production would become increasingly difficult and output could decline in the coming years.