According to the Memorandum of Understanding (MoU), AHECL would receive ten percent participating interest in exploration and production of crude oil and natural gas in the Namrup Block allotted to OIL, covering an area of 125 sqkm.
Chief Minister Sarbananda Sonowal congratulated AHECL on its first business venture since inception in 2006 and for a tie-up with a Navaratna company.
He urged OIL officials to handhold the state government-run PSU in furthering its business interests and achieving growth.
Sonowal also appreciated OIL for its success in the exploration and production of crude oil and natural gas in Assam and the Northeast, overcoming different challenges.
He stressed on the need to realise Hydrocarbon Vision 2030 for Northeast formulated by Prime Minister Narendra Modi.
Lauding the efforts of Numaligarh Refinery Limited (NRL) in increasing its production capacity from three metric tonnes to nine metric tonnes, he hoped that AHECL would perform well in the exploration and production of hydrocarbon energy in the state.
The state government has been making concerted efforts to harness the Assam's potential in the oil and natural gas sector and generate employment opportunities for the youths, he added.