Essar Oil & Gas adds five CBM blocks across West Bengal, Madhya Pradesh and Telangana
- Five CBM blocks totalling ~1,281 sq. km awarded across West Bengal, Madhya Pradesh and Telangana with an estimated 6.6 TCF gas‑in‑place.
- Two Raniganj blocks (~330 sq. km) expand the Raniganj footprint from ~500 sq. km to about 830 sq. km, enabling integrated field development.
- Essar has invested over ₹6,000 crore at Raniganj and currently produces ~950,000 SCMD, roughly 50% of India’s CBM output.
- Contracts were signed on October 15, 2026 under the SCBM‑2025 and SCBM‑2026 rounds in the presence of the Petroleum Minister; MoPNG and DGH backed the rounds to unlock unconventional hydrocarbons.
Awards and acreage
Essar Oil & Gas was awarded five CBM blocks through the Government of India’s Special CBM (SCBM) Bid Rounds 2025 and 2026, adding approximately 1,281 sq. km of acreage across West Bengal, Madhya Pradesh and Telangana, with an estimated 6.6 TCF of gas‑in‑place. Contracts were signed on October 15, 2026, in the presence of Petroleum Minister Hardeep Singh Puri, with MoPNG and DGH framing the bid rounds as part of efforts to unlock India’s unconventional hydrocarbon potential.
Raniganj expansion
Two newly awarded blocks in the Raniganj region (about 330 sq. km) increase the existing Raniganj East footprint from roughly 500 sq. km to around 830 sq. km. The proximity to producing assets is expected to create operational and infrastructure synergies and support development of an integrated CBM producing field that the company anticipates becoming the largest CBM field in India.
Other regional strategy
The Singrauli block in Madhya Pradesh reinforces presence in an established CBM basin, offering access to the existing CBM ecosystem. Blocks in Telangana’s Godavari Valley extend the company into a new CBM geography where it plans to apply its technical and operational experience.
Production, investment and targets
Essar Oil & Gas has invested more than ₹6,000 crore in exploration and development at Raniganj and currently produces approximately 950,000 standard cubic metres per day (SCMD), accounting for nearly half of India’s CBM output. The company states an ambition to progressively develop its CBM portfolio to contribute about 5% of India’s natural gas production.
Source: Essar