Essar Oil & Gas wins 5 CBM blocks in 3 states, adding 1,281 sq km
Synopsis
Essar Oil & Gas has secured five new CBM blocks across three states in a single go — adding 1,281 sq km and an estimated 6.6 TCF of gas resources. The Raniganj expansion alone could create India's largest CBM field, and with half the country's gas still imported, this is a bet that domestic unconventional gas can meaningfully change India's energy supply equation.
Key Takeaways
Essar Oil & Gas was awarded five new CBM blocks under SCBM Bid Rounds 2025 and 2026 , adding 1,281 sq km of acreage.
The new blocks carry an estimated 6.6 TCF of gas-in-place resources across West Bengal , Madhya Pradesh , and Telangana .
Contracts were signed on 15 October 2026 at a ceremony chaired by Petroleum Minister Hardeep Singh Puri .
The Raniganj expansion will grow the company's West Bengal footprint from 500 sq km to approximately 830 sq km , potentially creating India's largest CBM field .
Essar Oil & Gas already produces ~ 9,50,000 SCMD , accounting for nearly 50% of India's CBM output, backed by over ₹6,000 crore in investment at Raniganj.
Around half of India's natural gas is currently imported; the company targets contributing 5% of total domestic gas production.
Essar Oil & Gas Ltd. has been awarded five new Coal Bed Methane (CBM) blocks spanning 1,281 sq km across West Bengal, Madhya Pradesh, and Telangana under the Government of India's Special CBM (SCBM) Bid Rounds 2025 and 2026. The new acreage carries an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources, significantly expanding the company's upstream footprint in India's unconventional hydrocarbon sector.
The contracts were formally signed on 15 October 2026 at a ceremony chaired by Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas, in New Delhi. The signing underscores the Centre's push — through the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH) — to attract private investment into domestic exploration and production.
Expanding the Raniganj Footprint
Two of the five newly awarded blocks are located in the Raniganj region of West Bengal, together spanning approximately 330 sq km. Combined with Essar Oil and Gas' existing 500 sq km Raniganj East asset, the company will now operate roughly 830 sq km in the basin. The company expects the integrated cluster to become India's largest CBM producing field, given the operational and infrastructure synergies that proximity creates.
New Geographies: Singrauli and Godavari Valley
The Singrauli block in Madhya Pradesh deepens the company's presence in an established CBM basin, while the blocks in Telangana's Godavari Valley mark Essar Oil and Gas' entry into an entirely new CBM geography. Officials indicated the company plans to apply its technical expertise from Raniganj to accelerate development in both regions.
What the Company Said
Pankaj Kalra, CEO of Essar Oil and Gas Ltd., said the award 'marks a significant milestone in Essar Oil and Gas' growth journey and reinforces our commitment to unlocking India's vast unconventional hydrocarbon potential.' He added that the focus will be on 'translating this expanded acreage into sustainable production growth, creating long-term value and contributing meaningfully to India's energy security by strengthening domestic natural gas supplies and reducing dependence on imports.'
Bhuwan Chandra Tripathi, Chairman of Essar Oil and Gas Ltd. and Operating Partner – Energy at Essar Group, said natural gas 'will continue to play an important role in India's energy mix as energy demand continues to grow,' and emphasised the Group's commitment to 'developing India's indigenous energy resources.'
Scale of Existing Operations and Broader Ambitions
Essar Oil and Gas has already invested more than ₹6,000 crore in exploration and production at Raniganj and currently produces approximately 9,50,000 standard cubic metres of gas per day (SCMD) — accounting for nearly 50% of India's total CBM output. The company's stated ambition is to contribute 5% of India's overall natural gas production by progressively developing its CBM portfolio.
The expansion is strategically significant: around half of India's natural gas consumption is currently met through imports, making the accelerated development of domestic resources a key policy priority. With over 25 years of CBM experience, Essar Oil and Gas is one of the few domestic players with the technical depth to scale production at pace. All eyes will now be on how quickly the company moves from block award to first gas in the new acreage.
Point of View
Regulatory delays in land acquisition, and limited pipeline connectivity have historically constrained output. Essar's edge at Raniganj is real, but the Godavari Valley entry is greenfield territory where those advantages do not automatically carry over. The government's push on SCBM rounds signals ambition; whether that ambition converts into production volumes — and timeline — is the question that the next two to three years will answer.
NationPress
15 Oct 2026
Frequently Asked Questions
What are the five new CBM blocks awarded to Essar Oil & Gas?
Essar Oil & Gas was awarded five Coal Bed Methane blocks under India's Special CBM Bid Rounds 2025 and 2026, spanning 1,281 sq km across West Bengal, Madhya Pradesh, and Telangana. Two blocks are in the Raniganj region of West Bengal, one is the Singrauli block in Madhya Pradesh, and the remaining blocks are in Telangana's Godavari Valley.
Why is the Raniganj expansion significant?
The two new Raniganj blocks add approximately 330 sq km to Essar Oil & Gas' existing 500 sq km Raniganj East asset, bringing the total to around 830 sq km. The company expects this integrated cluster to become India's largest CBM producing field, leveraging shared infrastructure and operational synergies.
Who signed the CBM block contracts and when?
The contracts for the SCBM-2025 and SCBM-2026 Bid Rounds were formally signed on 15 October 2026 at a ceremony chaired by Union Petroleum Minister Hardeep Singh Puri in New Delhi. The event was organised under the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons.
How much of India's CBM production does Essar Oil & Gas currently account for?
Essar Oil & Gas currently produces approximately 9,50,000 standard cubic metres of gas per day (SCMD), which accounts for nearly 50% of India's total CBM production. The company has invested more than ₹6,000 crore in its Raniganj operations over more than 25 years.
Why does domestic CBM development matter for India's energy security?
Around half of India's natural gas consumption is currently met through imports, making domestic production a strategic priority. Accelerating CBM development through awards like these is part of the government's broader push to reduce import dependence and support a transition towards a gas-based economy.
