Guwahati: Assam cabinet on Tuesday approved a policy to revive exploration as crude output faces a possible decline within a decade.The cabinet approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, to attract Oil India, ONGC and private companies to untapped areas.The policy offers incentives, including GST-related concessions and support for bringing in new rigs and equipment.CM Himanta Biswa Sarma said Assam had not made any significant oil or natural gas discovery in nearly two decades, while existing operators were largely drilling deeper into old fields.“Exploration is unpredictable. If a company drills a well and does not find oil, the entire investment would go to waste,” he said, citing the financial risks involved in fresh exploration.Sarma said parts of north Assam, including Dhemaji, had hydrocarbon potential but had not been explored on a dedicated basis. The policy would encourage companies to obtain licences and explore these areas, he said.Assam currently produces around four million metric tonnes of crude oil annually. However, output from existing fields cannot rise indefinitely. “Within the next 10 years, production will gradually start declining,” he warned.The policy also seeks to revive mineral exploration. Apart from limestone at Umrangso, the state has not made any significant new mineral discoveries in two decades, Sarma said.“Exploration had almost come to a standstill. We want to encourage it now with this futuristic policy aimed at ensuring Assam’s natural-resource economy does not face a prolonged decline,” he said.
