Essar Oil & Gas Ltd. (formerly Essar Oil and Gas Exploration and Production Ltd.), one of India’s leading coal bed methane (CBM) producers, bagged five new CBM blocks under the government’s Special CBM (SCBM) Bid Rounds 2025 and 2026. The newly awarded blocks cover approximately 1,281 sq. km. across West Bengal, Madhya Pradesh and Telangana, with estimated gas-in-place resources of 6.6 trillion cubic feet (TCF). The expansion strengthens the company’s domestic exploration and production portfolio while supporting India’s efforts to unlock unconventional natural gas resources and improve energy security.
Contracts Signed Under Special CBM Bid Rounds
Essar Oil & Gas formally signed the contracts for the SCBM-2025 and SCBM-2026 bid rounds on 15 October 2026. Shri Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas, chaired the signing ceremony. The awards mark an important step in the government’s efforts, through the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH), to attract investment, accelerate unconventional hydrocarbon exploration and strengthen domestic oil and gas production.
Raniganj Expansion to Strengthen CBM Production
Two newly awarded blocks in West Bengal’s Raniganj region cover approximately 330 sq. km. Together, they will expand Essar Oil & Gas’ existing Raniganj East acreage from around 500 sq. km. to approximately 830 sq. km. Their proximity to the company’s existing producing asset creates opportunities to integrate infrastructure, streamline operations and leverage established technical capabilities. Consequently, Essar Oil & Gas expects to develop an integrated CBM-producing field that could become India’s largest CBM-producing field. The company’s experience at Raniganj provides a foundation for developing the additional resources and strengthening its position in India’s coal bed methane sector.
CBM Opportunities in Madhya Pradesh and Telangana
Beyond West Bengal, the new awards will expand Essar Oil & Gas’ presence in two additional regions. Singrauli, Madhya Pradesh: The new block strengthens the company’s presence in an established CBM region, offering opportunities to leverage the basin’s existing development ecosystem. Godavari Valley, Telangana: The newly awarded blocks extend the company’s footprint into a new CBM geography, allowing it to apply its exploration and production expertise to developing additional natural gas resources. Together, these blocks diversify the company’s resource base and create opportunities for future production growth across multiple states.
Company Leadership Highlights Energy Security and Growth
Pankaj Kalra, CEO of Essar Oil & Gas Ltd., said, “The award of these five CBM blocks marks a significant milestone in Essar Oil & Gas’ growth journey and reinforces our commitment to unlocking India’s vast unconventional hydrocarbon potential. 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 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. The expansion of Essar Oil & Gas’ CBM portfolio reinforces our commitment to developing India’s indigenous energy resources. 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.”
Essar Oil & Gas Builds on ₹6,000 Crore Investment in Raniganj
Essar Oil & Gas has invested more than ₹6,000 crore in exploration and production activities at Raniganj. The company currently produces approximately 950,000 standard cubic metres of gas per day (SCMD), accounting for nearly 50% of India’s CBM production. Building on this operating base, the company aims to contribute 5% of India’s total natural gas production by progressively developing its CBM portfolio and unlocking additional domestic resources. Essar Group, a global conglomerate with more than five decades of entrepreneurial experience, operates across energy, infrastructure, metals and mining, technology and retail. Through Essar Oil & Gas, the Group continues to expand its upstream energy portfolio in India.
Expanding Domestic Gas Resources to Reduce Import Dependence
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. India currently meets around half of its natural gas consumption through imports. Therefore, developing domestic gas reserves has become increasingly important for improving energy security, strengthening local supply chains and supporting the country’s transition towards a gas-based economy. As per company press release, the award of five new CBM blocks represents a significant expansion of Essar Oil & Gas’ exploration portfolio. As the company advances development across West Bengal, Madhya Pradesh and Telangana, the new acreage could support long-term production growth while contributing to India’s broader energy security objectives.
