Essar Oil & Gas has secured five new coal bed methane blocks across West Bengal, Madhya Pradesh and Telangana, adding about 1,281 sq km of acreage and an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources to its portfolio.
The Government of India awarded the blocks through the Special Coal Bed Methane (SCBM) bid rounds held in 2025 and 2026. Essar Oil & Gas formally signed the contracts on October 15, 2026, at a ceremony chaired by Oil Minister Hardeep Singh Puri.
Two of the newly awarded blocks are in West Bengal’s Raniganj region and together cover about 330 sq km. Their proximity to Essar’s existing Raniganj East asset, which spans around 500 sq km, will take the company’s operational footprint in the region to roughly 830 sq km.
Essar said the adjoining acreage would allow it to use existing infrastructure, operational capabilities and technical expertise to develop an integrated coal bed methane field. The company said the field is expected to become India’s largest CBM-producing field, although the statement did not provide a production timeline for the newly awarded blocks.
The Singrauli block in Madhya Pradesh will strengthen Essar’s presence in an established CBM-producing region, while the blocks in Telangana’s Godavari Valley will take the company into a new CBM geography. Essar said it would apply its experience from Raniganj to the development of the new resource areas.
“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,” Pankaj Kalra, chief executive officer of Essar Oil & Gas, said. He added that the company’s focus was on translating the expanded acreage into production growth and strengthening domestic natural gas supplies.
Bhuwan Chandra Tripathi, chairman of Essar Oil & Gas, said natural gas would continue to play an important role in India’s energy mix as demand grows. He said the group remained focused on the responsible development of domestic hydrocarbon resources while contributing to a more balanced energy mix.
Essar Oil & Gas has invested more than ₹6,000 crore in exploration and production at Raniganj. It currently produces around 950,000 standard cubic metres of gas per day, accounting for nearly 50 per cent of India’s CBM production, according to the company.
The company said 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. The contract signing was conducted through the Ministry of Petroleum & Natural Gas and the Directorate General of Hydrocarbons, which are seeking to expand exploration and production of unconventional hydrocarbon resources in India.
