~Essar Oil & Gas secures five new CBM blocks across West Bengal, Madhya Pradesh and Telangana, adding 1,281 sq. km. of acreage and 6.6 TCF of estimated gas-in-place resources to strengthen India’s domestic energy security.
New Delhi, October 15 (VNI): Essar Oil & Gas Ltd. (Essar Oil and Gas Exploration and Production Ltd., EOGEPL), one of India’s leading Coal Bed Methane (CBM) producers, has been awarded five new CBM blocks across West Bengal, Madhya Pradesh and Telangana under the Government of India’s Special CBM (SCBM) Bid Rounds 2025 and 2026. Covering approximately 1,281 square kilometres of additional acreage, the five blocks have estimated gas-in-place resources of 6.6 trillion cubic feet (TCF), strengthening the company’s domestic exploration portfolio and supporting India’s efforts to enhance energy security.
The contracts for the SCBM-2025 and SCBM-2026 bid rounds were formally signed on October 15, 2026, at a ceremony chaired by Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas. The signing represents an important step in the Government of India’s efforts, through the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH), to unlock the country’s unconventional hydrocarbon potential, attract investment and strengthen domestic exploration and production.
Two of the newly awarded blocks are located in the Raniganj region of West Bengal and together cover approximately 330 square kilometres. Their addition will expand Essar Oil & Gas’ existing Raniganj East footprint of around 500 square kilometres to approximately 830 square kilometres. The proximity of the new blocks to the company’s existing producing asset is expected to generate significant synergies in infrastructure, operations and technical capabilities. This integrated development approach could help establish what is expected to become India’s largest CBM-producing field.
The Singrauli block in Madhya Pradesh further strengthens the company’s presence in an established CBM-producing region, providing opportunities to leverage the broader ecosystem supporting coal bed methane development in the basin. Meanwhile, the two blocks in Telangana’s Godavari Valley mark the company’s expansion into a new CBM geography, enabling it to apply its established technical expertise and operational capabilities to develop additional domestic gas resources.
Pankaj Kalra, CEO of Essar Oil & Gas Ltd., said the award of the five blocks marks a significant milestone in the company’s growth journey and reinforces its commitment to unlocking India’s unconventional hydrocarbon potential. Building on its experience at Raniganj, the company sees substantial opportunities to use its technical expertise, operational capabilities and established infrastructure to accelerate resource development. Its focus will be on translating the expanded acreage into sustainable production growth, creating long-term value and contributing to India’s energy security by strengthening domestic natural gas supplies and reducing dependence on imports.
Bhuwan Chandra Tripathi, Chairman of Essar Oil & Gas Ltd. and Operating Partner – Energy at Essar Group, said natural gas would continue to play an important role in India’s energy mix as demand grows. He added that the expansion of the company’s CBM portfolio reinforces the Group’s commitment to developing indigenous energy resources and supporting India’s energy security through the responsible development of domestic hydrocarbons, while contributing to a more balanced and sustainable energy mix.
Essar Group is a global conglomerate with more than five decades of entrepreneurial experience in conceptualising, investing in, building and operating assets across the energy, infrastructure, metals and mining, technology and retail sectors. Through Essar Oil & Gas Ltd., the Group continues to expand its upstream energy portfolio across India.
Essar Oil & Gas has invested more than ₹6,000 crore in exploration and production activities at Raniganj and currently produces approximately 950,000 standard cubic metres of gas per day (SCMD), accounting for nearly 50% of India’s CBM production. The company aims to contribute 5% of the country’s natural gas production by progressively developing its CBM portfolio and unlocking additional domestic gas resources.
With more than 25 years of experience in CBM exploration and production, Essar Oil & Gas is positioned to contribute to the development of India’s unconventional hydrocarbon resources. Around half of India’s natural gas consumption is currently met through imports, making the accelerated development of domestic gas resources increasingly important for strengthening energy security and supporting the country’s transition towards a gas-based economy. VNI NEWS, Essar Oil & Gas, EOGEPL, Coal Bed Methane, CBM Blocks, Essar Group, Raniganj CBM, Singrauli CBM, Godavari Valley, West Bengal, Madhya Pradesh, Telangana, Indian Natural Gas Production, Energy Security, Ministry of Petroleum and Natural Gas, Essar Oil & Gas CBM blocks, five new CBM blocks in India, Essar Oil & Gas expansion, 6.6 TCF gas resources, India coal bed methane production, VNINews, VNINews.com