Geologically, Assam lies in an oil-rich belt. The ground below is rich in oil and natural gas housing over an estimated 1.3 billion tonnes of crude oil and 156 billion cubic meters of natural gas. Yet, around 58% of these hydrocarbon reserves are yet to be explored and extracted. Most of these areas lie in what is called a category I Basin.
Considering the availability of vast unexplored or poorly explored area with substantial yet to be established hydrocarbon resource base and widening gap of demand and supply, the Govt. of India has felt the need to accelerate the pace of exploration for hydrocarbons in the country. To this effect, the Government provided strategic decision towards exploration of the Indian sedimentary basins in a phased manner in keeping with technological advancement and environmental concerns. To achieve the set of objectives, the implementation schedule envisages continuance of exploration in producing basins, pursuits of extensive exploration in non –producing and frontier basins and a programme for appraisal of the Indian sedimentary basins. In view of the inherent risk of hydrocarbon exploration and huge financial investment associated with such risky exploration ventures, New Exploration Licensing Policy (NELP) was begun in 1998. Hydrocarbon Exploration and Licensing Policy (HELP) began in 2016. Open Acreage Licensing Policy (OALP) has been launched in 2017 which allows the investors to carve out blocks of their choice by assessing E&P data available at National Data Repository (NDR) and by submitting an Expression of Interest (EoI).
Assam Hydrocarbon and Energy Company Limited was incorporated on 5th September 2006 under the Companies Act 1956, by Govt. of Assam primarily with the objectives of exploration of hydrocarbons and other sources of energy. With an authorised capital of Rupees One Hundred Crores, the company is categorised as a "Public Company Limited by Shares".
