Assam is Now India’s First State to Directly Produce Crude Oil

Assam just made energy history. It is now the first Indian state to directly produce and profit from crude oil, marking a major energy shift.

21 Jul 2025 Energy & PetroleumTrending
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The Breakthrough

Discovery at Namrup Borhat‑1 well, Dibrugarh, revealed significant hydrocarbons. Assam govt holds a stake alongside Oil India Limited (OIL). Now, the state isn’t just a supplier, it’s a crude producer.

21 Jul 2025 Energy & PetroleumTrending
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Assam’s Role in India’s Energy Mix

In FY2023–24, Assam produced ~4,361 TMT, equal to ~15% of India's crude output. It already ranks 3rd among states in oil output.

21 Jul 2025 Energy & PetroleumTrending
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How the Landscape Is Changing

The Assam Cabinet cleared land exemption rules, streamlining exploration. This unlocks quicker access to project areas. It will now shift from royalty‑based income to direct production revenue. So, Assam now shares in both the profit and the risk of crude production.

21 Jul 2025 Energy & PetroleumTrending
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What It Means for Suppliers

For suppliers, it means new upstream & midstream demands, like steel structures, pipelines, and EPC contracts. Local procurement surge is also expected as Assam wants local material, purpose-built resources.

21 Jul 2025 Energy & PetroleumTrending
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Bigger Picture (Outlook to 2030)

Assam is becoming India’s Eastern petroleum hub with ₹80,000 crore investment planned under Hydrocarbon Vision 2030 and pipeline corridors connecting Paradip–Guwahati, LNG projects, and refinery upgrades.

21 Jul 2025 Energy & PetroleumTrending
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