Assam Chief Minister Himanta Biswa Sarma on Wednesday claimed that Assam has become the only state in the country to be directly involved in crude oil production, marking what he described as a historic milestone in India’s energy sector.
The Chief Minister said the development follows the discovery of hydrocarbons at the Namrup–Borhat-1 well in Dibrugarh district, where the Assam government is a participating stakeholder along with Oil India Limited (OIL). Unlike other states that receive royalties from oil extracted within their territory, Assam is now directly engaged in upstream oil production, Sarma said.
“This is a proud moment for Assam. For the first time, a state government in India is directly involved in oil production, not merely as a beneficiary of royalties but as a partner in the process,” Sarma said in a statement.
Assam has played a pivotal role in India’s oil history, being home to the country’s first oil well at Digboi. However, oil exploration and production in the state have traditionally been carried out by central public sector undertakings such as OIL and ONGC. The latest development represents a shift from that model, giving the state government a more active role in the sector.
According to officials, the state’s participation is expected to enhance revenue generation, strengthen energy security, and create opportunities for local employment and infrastructure development. Further technical evaluation is underway to assess the commercial viability and production potential of the well.
The Chief Minister said the move reflects Assam’s broader effort to secure a fairer share of benefits from its natural resources and position itself as a key contributor to India’s energy landscape.
Energy experts, however, note that the long-term impact will depend on sustained production levels, investment in technology, and effective management of environmental and operational challenges associated with oil extraction.
The development comes amid Assam’s push to expand its industrial base and attract investment in sectors such as hydrocarbons, manufacturing and infrastructure.
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