Guwahati, Aug 18: The Assam Cabinet has approved the Assam Hydrocarbon Exploration, Production and Upstream Ecosystem Development Policy, 2026, seeking to encourage fresh exploration for oil and natural gas across the state.Chief Minister Himanta Biswa Sarma, on Tuesday, said the policy would provide incentives to encourage exploration in areas where “hydrocarbons have not yet been discovered but where geological indications suggest the possibility”. “Through this policy, we want to give prospective explorers small, symbolic benefits. We want to give a message that there is a friendly government in the state,” Sarma said at a press briefing after the Cabinet meeting. He said the move comes against the backdrop of declining prospects for Assam’s existing oil production, warning that output could fall substantially over the next decade. Assam currently produces around 4 million metric tonnes of crude oil, but Sarma said production is unlikely to increase beyond the present level and could begin declining over the next 10 years. “The discovery of new oil wells in Assam is not happening. Whatever new extraction is being done by Oil India and ONGC is largely from oil wells discovered earlier,” he added. He said extraction from existing fields increasingly requires deeper drilling. While drilling earlier took place at depths of around 300 metres, current operations are extending to 900-1,000 metres and beyond. According to Sarma, the unpredictable nature of exploration has discouraged agencies from undertaking fresh exploration in areas where the presence of oil has not been established. “North Assam is said to have oil, but there has not been dedicated exploration there so far,” he said. The Chief Minister said Assam had not seen significant exploration for new oil and natural gas wells for nearly two decades. The new policy will therefore seek to support exploration activities across the state through incentives, particularly in areas where there is potential for hydrocarbon reserves but no confirmed discoveries. “We will provide small incentives to anyone who brings in rigs and undertakes exploration,” Sarma said. Sarma also said Assam had not been able to identify significant new natural resources in recent years, apart from limestone in Umrangso.