Essar Oil & Gas has secured five new Coal Bed Methane (CBM) blocks across West Bengal, Madhya Pradesh and Telangana, adding approximately 1,281 sq. km. of acreage and an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources. The expansion strengthens the company’s position in India’s unconventional hydrocarbon sector and supports the country’s efforts to increase domestic natural gas production and energy security.

The contracts for the newly awarded blocks under the Government of India’s Special CBM (SCBM) Bid Rounds 2025 and 2026 were signed on October 15, 2026, in the presence of Shri Hardeep Singh Puri, Hon’ble Minister of Petroleum and Natural Gas, Government of India.

The awards represent a significant step in unlocking India’s unconventional hydrocarbon potential and attracting investment into domestic exploration and production.

Essar Oil & Gas Adds Five New CBM Blocks Across Three States

The five new CBM blocks will expand Essar Oil & Gas’ exploration portfolio across three states, combining opportunities in established coal bed methane regions with entry into a new geographical area.

Key highlights of the expansion include:

Five new CBM blocks awarded under the SCBM Bid Rounds 2025 and 2026.

Approximately 1,281 sq. km. of additional acreage.

Estimated 6.6 TCF of gas-in-place resources across the newly awarded blocks.

Three states covered: West Bengal, Madhya Pradesh and Telangana.

Expansion opportunities through existing infrastructure, technical capabilities and basin-level development.

The contracts were formally signed on October 15, 2026, as part of the government’s efforts to encourage exploration and development of unconventional hydrocarbon resources in India.

Raniganj CBM Expansion to Strengthen Existing Operations

Two of the newly awarded blocks are located in the Raniganj region of West Bengal and together cover approximately 330 sq. km.

These blocks will expand Essar Oil & Gas’ existing Raniganj East footprint from approximately 500 sq. km. to around 830 sq. km.

The proximity of the new acreage to the company’s existing producing asset is expected to create operational and infrastructure synergies, including opportunities to leverage established facilities, technical expertise and operating capabilities.

The company expects the expanded Raniganj footprint to support the development of an integrated CBM-producing field, with the potential to become India’s largest CBM-producing field.

Essar Oil & Gas has invested more than ₹6,000 crore in exploration and production activities at Raniganj. The asset currently produces approximately 950,000 standard cubic metres of gas per day (SCMD), accounting for nearly 50% of India’s coal bed methane production.

Singrauli and Godavari Valley Expand CBM Exploration Opportunities

Beyond West Bengal, the new CBM blocks provide opportunities to expand operations in Madhya Pradesh and Telangana.

Singrauli, Madhya Pradesh

The Singrauli block strengthens Essar Oil & Gas’ presence in an established CBM region. Its development could allow the company to leverage the broader ecosystem supporting coal bed methane exploration and production in the basin.

Godavari Valley, Telangana

The newly awarded blocks in the Godavari Valley mark the company’s expansion into a new CBM geography. This creates opportunities to apply its existing technical and operational experience to the exploration and development of additional domestic gas resources.

Together, these blocks diversify the company’s exploration footprint and provide opportunities to progressively expand its unconventional hydrocarbon portfolio.

Essar Oil & Gas Focuses on India’s Domestic Natural Gas Production

Commenting on the awards, Pankaj Kalra, CEO of Essar Oil & Gas Ltd., said the five new blocks represent an important milestone in the company’s growth journey.

He highlighted the opportunity to build on the company’s experience at Raniganj, leverage its technical expertise and infrastructure, and convert the expanded acreage into sustainable production growth.

Kalra also emphasised the role of domestic natural gas supplies in strengthening India’s energy security 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 reiterated the Group’s focus on developing indigenous energy resources responsibly and supporting India’s transition towards a more balanced and sustainable energy mix.

Essar Oil & Gas: Key Business and Operational Highlights

Essar Oil & Gas Ltd., formerly known as Essar Oil and Gas Exploration and Production Ltd. (EOGEPL), is focused primarily on unconventional hydrocarbons, including coal bed methane and shale gas.

The company’s key operational highlights include:

Resource base: Approximately 12 TCF of CBM and shale gas resources, as stated by the company.

Investment: More than ₹6,000 crore invested in exploration and commercial development at the Raniganj CBM block.

Production: Approximately 950,000 SCMD of natural gas.

Production contribution: Nearly 50% of India’s CBM production.

Operating experience: Approximately 25 years of experience in CBM exploration and production.

Infrastructure: More than 454 commissioned wells and established supporting infrastructure at the Raniganj project.

The company has also reported cumulative CBM production exceeding approximately 105 billion cubic feet (BCF), reflecting its experience in developing unconventional gas resources in India.

How the New CBM Blocks Could Support India’s Energy Security

India’s natural gas demand is supported by its expanding industrial, commercial and energy requirements. However, a substantial share of the country’s natural gas consumption is met through imports.

The development of domestic coal bed methane resources can help diversify gas supplies and improve access to indigenous energy resources.

Essar Oil & Gas aims to contribute approximately 5% of India’s natural gas production over time by progressively developing its CBM portfolio and unlocking additional resources.

The five newly awarded blocks provide another opportunity to pursue this ambition. Their development will depend on exploration results, project execution, infrastructure requirements and the commercial viability of the resources.