In 2025, Assam became first state to engage in oil production: CM Sarma
OIL had discovered hydrocarbons in Namrup Borhat-1 well in Dibrugarh district in July 2025
A file image of Chief Minister Sarma addressing a gathering in Dibrugarh. (Photo:@himantabiswa/X)
Guwahati, Jan 22: In 2025, Assam became the first state to be engaged in oil production with the discovery in the Namrup-Borhat block, said Chief Minister Himanta Biswa Sarma, on Thursday.
Marking it as a significant moment in the state's economic and industrial journey, Sarma, who is currently in Switzerland’s Davos attending the World Economic Forum (WEF) Annual Meeting, noted that the development will strengthen government revenue and accelerate Assam's overall growth.
“Assam is not only defined by its glorious past, it is steadily shaping new milestones…” he said in a social media post, highlighting the discovery of crude oil in the Namrup-Borhat block by Oil India Limited (OIL).
OIL had discovered hydrocarbons in Namrup Borhat-1 well in Dibrugarh district in July 2025.
Officials said the discovery assumes importance as it adds a new dimension to Assam's long-standing association with the hydrocarbons sector, which began over a century ago with Asia's first oil well at Digboi.
Assam holds 12% of the country’s natural gas reserves and produces 50% of India’s onshore natural gas, positioning itself as a critical supplier in the nation’s energy landscape.
The Chief Minister emphasised that enhanced oil production would not only boost the state exchequer through higher royalties and associated revenues but also create employment opportunities, stimulate ancillary industries and support infrastructure development in the region.
"This milestone will have a multiplier effect on Assam's economy, particularly in Upper Assam, which has traditionally been the hub of oil and gas activities," he said.
Industry experts believe that domestic oil discoveries such as Namrup-Borhat will contribute to India's broader objective of reducing dependence on crude oil imports and strengthening energy security.
For Assam, the project is also seen as aligning with the state government's push for industrial expansion, investment attraction and sustainable economic growth.
The Chief Minister reiterated that Assam is moving ahead with confidence, blending its rich legacy with a forward-looking development agenda.
He added that the Namrup-Borhat oil discovery stands as a testament to Assam’s growing role in India’s economic and energy landscape.
IANS