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Essar Oil & Gas said it has secured five coal bed methane (CBM) blocks across West Bengal, Madhya Pradesh and Telangana, adding around 1,281 square kilometres to its exploration acreage as it seeks to expand domestic natural gas production.
The blocks, awarded under the government’s Special CBM Bid Rounds 2025 and 2026, have an estimated 6.6 trillion cubic feet (TCF) of gas-in-place resources. Contracts for the blocks were signed on October 15 in the presence of Petroleum Minister Hardeep Singh Puri.
The expansion comes as the government steps up efforts to raise domestic hydrocarbon output. Puri said the Samudra Manthan programme will seek to unlock offshore resources through fresh seismic surveys, shared drilling costs for around 60 deep- and ultra-deep-water wells, and common offshore infrastructure.
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“India’s domestic hydrocarbon production will receive a boost through the visionary Samudra Manthan programme,” Puri said in a post on X, adding that the next phase of upstream growth would be driven by science-based exploration, technology-enabled development and stronger collaboration among government, industry, service providers, technology partners and research institutions.
For Essar, the biggest expansion will be in Raniganj, West Bengal, where two new blocks spanning about 330 sq km will increase its footprint to around 830 sq km from about 500 sq km. The proximity to its existing producing asset is expected to create operating and infrastructure synergies.
The company has also secured the Singrauli block in Madhya Pradesh, while the Godavari Valley blocks in Telangana mark its entry into a new CBM geography.
Essar Oil & Gas currently produces about 950,000 standard cubic metres of gas per day, accounting for nearly 50% of India’s CBM production. It has invested more than ₹6,000 crore in exploration and production at Raniganj and aims to contribute 5% of India’s natural gas production as it develops its CBM portfolio.
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“The award of these five CBM blocks marks a significant milestone in Essar Oil & Gas’ growth journey,” chief executive Pankaj Kalra said, adding that the company would leverage its technical expertise, operational capabilities and existing infrastructure to accelerate development and strengthen domestic gas supplies.
Around half of India’s natural gas consumption is currently met through imports, making faster development of indigenous gas resources important for energy security.
TOPICSEssar GroupThis article was first uploaded on October seventeen, twenty twenty-six, at fifty-nine minutes past twelve in the am. © The Indian Express (P) Ltd