Guwahati, Aug. 19 -- The Assam Cabinet has approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, aimed at encouraging oil and natural gas exploration in underexplored and high-risk areas of the state.

Chief Minister Himanta Biswa Sarma said the policy was necessitated by the absence of significant new oil discoveries in Assam in recent 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 n...