Essar Oil & Gas bags 5 coal bed methane blocks across West Bengal, MP

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The newly awarded acreage will strengthen the company’s presence in established gas-producing regions and open up opportunities in Telangana’s Godavari valley

By BL New Delhi Bureau

Updated - October 16, 2026 at 07:02 PM.

Pankaj Kalra, CEO of Essar Oil & Gas

Essar Oil & Gas said on Thursday that the Government of India awarded it five new coal bed methane (CBM) blocks through its Special CBM (SCBM) bid rounds 2025 and 2026.

The blocks add roughly 1,281 sq km of new acreage across West Bengal, Madhya Pradesh and Telangana, with an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources.

The two newly awarded blocks in the Raniganj region of West Bengal, together spanning around 330 sq km, will expand Essar’s existing Raniganj East footprint of around 500 sq km to around 830 sq km.

The proximity of the new blocks to the company’s existing producing asset will create significant synergies in infrastructure, operations, and technical capabilities, enabling the development of an integrated CBM producing field expected to become India’s largest CBM producing field, the firm said.

The Singrauli block in Madhya Pradesh further strengthens its presence in an established CBM region, providing an opportunity to leverage the broader ecosystem associated with CBM development in the basin.

The blocks in Telangana’s Godavari valley mark an expansion into a new CBM geography, allowing Essar Oil & Gas to apply its established expertise to developing new resource areas.

Company eyes sustainable production growth

Pankaj Kalra, CEO of Essar Oil & Gas, said, “Building on our proven track record at Raniganj, we see substantial opportunities to leverage our technical expertise, operational capabilities and established infrastructure to accelerate the development of these resources. Our 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 & Gas, noted that natural gas will continue to play an important role in India’s energy mix as energy demand grows.

“As a Group, we remain focused on supporting India’s energy security through responsible development of domestic hydrocarbon resources, while contributing to the country’s transition towards a more balanced and sustainable energy mix,” he added.

Raniganj accounts for nearly half of India’s CBM output

Essar Oil & Gas has invested more than ₹6,000 crore in exploration and production at Raniganj. Currently, it produces around 950,000 standard cubic metres of gas per day (SCMD), accounting for nearly 50 per cent of India’s CBM production. Its broader ambition is to contribute 5 per cent of India’s natural gas production by progressively developing its CBM portfolio and unlocking additional domestic gas resources.

Contracts signed for 2025 and 2026 bid rounds

The company, formerly called Essar Oil and Gas Exploration and Production, said it formally signed the contracts for the SCBM-2025 and SCBM-2026 bid rounds on October 15, 2026, at a ceremony chaired by Oil Minister Hardeep Singh Puri.

The signing marks an important step in the Government’s efforts, through the Ministry of Petroleum & Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH), to unlock India’s unconventional hydrocarbon potential, attract investment and strengthen domestic exploration and production, the company noted.

Published on October 15, 2026

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