Assam Oil Company Ltd.

Assam Oil Company Ltd. (AOC) was one of the earliest enterprises in the world engaged in exploration and production of oil. Oil was discovered in Digboi in northeastern part of Assam in 1889 by Assam Railway & Trading Company (Originally formed with the object of drilling for oil, later on Assam Oil Company was created to carry out exploration work in Assam and adjoining areas), which established the predecessor company to AOC that was later acquired by Burmah Oil Company Ltd.(BOC), founded 1896, which played a major role in the oil industry in South Asia for about a century through its subsidiaries and in discovery of oil in the middle east though its significant interest in British Petroleum, and also discovered Yenangyaung Oil Field in 1897 and, in 1901, discovered Chauk (Singu) Oil Field, both in Myanmar. Assam Oil Company was taken over by the BOC in 1910, and between 1910 and 1930, the BOC carried out extensive exploration work in Assam and adjoining areas. In 1937, BOC, Royal Dutch/Shell, and Anglo Iranian Oil Company applied for exploration licensee in India and started geophysical survey. Due to World War II, all activities were suspended.Assam Oil is now a division of the Indian Oil Corporation.

Oil Discovery in India in the state of ASSAM

Soon after Edwin Drake drilled the world's first oil well in 1859 at Titusville, Pennsylvania, USA, history chronicles another exploratory effort in search of the black liquid gold, across continents.

In the 1860s, sub surface oil exploration activities started in the dense jungles of Assam in north-east India and in March 1867, oil was struck in the well drilled near Makum. This was the first successful mechanically drilled well in Asia.

The first commercial discovery of crude oil in the country was, however, made in 1889 at Digboi when a group of gallant oilmen erected a 20 meter high thatch covered wooden structure at the head of the Brahmaputra valley, in the extreme corner of northeastern India. This modest structure or 'derrick' had little geometric or aesthetic appeal. Nevertheless, it marked the beginning of the saga of the quest for petroleum on Indian and, indeed, Asian territory. The only inhabitants were elephants and rhinos, the odd jackal, snakes and many leeches. The environs smelt of the rainsoaked forest mingled with heavy odour of oil seepage.

Digboi

Asia's first refinery was set up at Digboi in Assam. The discoverer of this Digboi oilfield was the Assam Railways & Trading Company Limited (AR&T Co. Ltd.), a registered company of London in 1881, with the objective to explore the rich natural resources of Upper Assam.

The earliest recorded reference of oil in Assam can be traced to Lieut. R Wilcox of the 46th Regiment Native Infantry who saw it as "… rising to the surface at Supkhong with great bubbling of gas and green petroleum…" in "Memoir of a survey of Assam and the Neighboring Countries executed in 1825-6-7-8." Asiatic Researches Vol.XVII, pp. 314 - 467.

Legend has it that an elephant working for the AR&T Co. Ltd. returned with distinct traces of oil on its trail. The excited owners of the elephant tracked its footprints and found seepage of oil bubbling to the surface.

"Dig! Boy! Dig!", cried the Englishman to his men, hence the name "Digboi". Thus this day, a tiny hamlet tucked amidst lush greeneries over rolling hills found a place in the map of the world’s petroleum industry. Albeit very low production, Digboi still retains the distinction of being the world’s oldest continuously producing oilfield.

Following the discovery of Digboi well No.1, systematic drilling began in 1891 DIGBOI Full ImageA British couple in wax.....at the DIGBOI Oil Museum.....by AR&T Co Ltd. which then represented the final frontiers of technology and enterprise at a time when oil exploration was no more than just a gleam in the eye of most nations. However, the company had the vision to recognise that the oil business was a full time business, which could not be mixed up with timber, coal, railways etc. Therefore, a new company known as Assam Oil Company (AOC) was formed in 1899 with a capital of £ 310,000 to take over " the petroleum interests of the AR&T Co. Ltd."