Facts about Oil Discovery in India

First oil well of India was drilled by Assam Railway & Trading Company in 1865, just 6 years after world’s first oil well was drilled in United States in 1859.  First discovery of oil took place in Digboi in Assam in 1889.

Oil policy immediately before and after independence

• Before World War -II, India’s oil exploration was under the multinationals / private companies and they produced a small amount of oil in north east. After independence, the Assam Oil Company was nationalized and currently, it is a division of the Indian Oil Corporation. There was a complete no to private participation in oil exploration after independence. The Industrial Policy of 1956 declared that – future development of oil industry will be responsibility of state.

Initial discoveries of oil in India

• The first oil discovery of Independent India happened in 1953 near Nahorkotiya (Naharkatiya) in Assam. Other discoveries included Ankleshwar in Cambay Basin in 1958; Mumbai High in Mumbai Basin in 1972; Cauvery in 1958 (Karaikal-1); Jaiselmer sub-basin in 1958 (Manhertibba- 1) and Assam-Arakan yoma fold belt in 1973 (Baramura-1).
• In later 1950s, the government established an Oil and Natural Gas directorate under Geological Survey of India for oil exploration. It was later converted into Oil and Natural Gas Commission and finally 1995, it was changed into Oil & Natural Gas Commission (ONGC). Indian Oil Company was established in 1959.