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Essar Oil & Gas secures five new CBM blocks in India

Essar Oil & Gas has expanded its operations after winning five new coal bed methane exploration blocks across three Indian states.

By the CEII Desk, from reporting by Offshore Technology

Key points

  • Essar Oil & Gas acquired five new CBM blocks covering 1,281km² across West Bengal, Madhya Pradesh, and Telangana.
  • The award follows the Indian Government’s Special CBM Bid Rounds 2025 and 2026, with contracts signed under Petroleum Minister Hardeep Singh Puri.
  • The new blocks hold an estimated 6.6 trillion cubic feet of gas-in-place resources.
  • The company aims to strengthen domestic gas supplies and reduce import reliance.

What happened

Indian operator Essar Oil & Gas has secured five new exploration blocks spanning roughly 1,281km² in the states of West Bengal, Madhya Pradesh, and Telangana, according to Offshore Technology. The acreage was awarded through the Indian Government’s Special CBM Bid Rounds 2025 and 2026. A formal contract signing ceremony took place under the supervision of India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri.

Why it matters

Offshore Technology reported that the newly acquired acreage contains an estimated 6.6 trillion cubic feet of gas-in-place resources. Two blocks in West Bengal’s Raniganj coalfield will combine with existing operations to create a contiguous footprint of approximately 830km², which the company expects will form India's largest CBM-producing field. Additional blocks in Madhya Pradesh and Telangana further expand the upstream firm's geographical reach. Imported gas currently meets approximately half of India's total consumption.

What comes next

Essar Oil & Gas intends to leverage its technical capacity and established infrastructure to accelerate resource development. CEO Pankaj Kalra stated that the company aims to translate the expanded acreage into sustainable production growth and contribute to national energy security by lifting domestic supplies.

Original reporting

This article draws on the following reports. Read them in full on the publishers’ sites.

Context from CEII

Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.

2.9% of electricity in India came from gas in 2024

Countries in this story

Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.

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