Essar Oil & Gas has been awarded five new Coal Bed Methane (CBM) blocks through the Government of India’s Special CBM Bid Rounds 2025 and 2026. The blocks cover 1,281 sq km across West Bengal, Madhya Pradesh and Telangana, and contain estimated gas-in-place resources of 6.6 TCF.

Contracts for the blocks were signed on October 15, 2026, at a ceremony chaired by Hardeep Singh Puri, Minister of Petroleum & Natural Gas. The awards form part of efforts by the Ministry of Petroleum & Natural Gas and the Directorate General of Hydrocarbons to unlock unconventional hydrocarbon resources, attract investment and strengthen domestic exploration and production.

Two blocks in West Bengal’s Raniganj region cover about 330 sq km and will expand Essar Oil & Gas’ existing 500 sq km Raniganj East footprint to around 830 sq km. Their proximity to the company’s producing asset is expected to support infrastructure, operational and technical synergies, with the proposed integrated field positioned to become India’s largest CBM-producing field.

The Singrauli block will strengthen the company’s presence in an established CBM region in Madhya Pradesh, while the two blocks in Telangana’s Godavari Valley will extend its operations into a new CBM geography. Essar Oil & Gas said its experience at Raniganj and existing infrastructure would support the development of the newly awarded resources.

The company has invested more than Rs. 60 bn in exploration and production at Raniganj and currently produces about 950,000 standard cubic metres of gas per day (SCMD), representing nearly 50 per cent of India’s CBM output. It aims to contribute 5 per cent of the country’s natural gas production by progressively developing its CBM portfolio. With about half of India’s natural gas consumption met through imports, the company said domestic resource development would support energy security and the transition to a gas-based economy.