Essar Oil Secures 5 CBM Blocks for India Gas Production

Essar Oil & Gas has significantly expanded its footprint by acquiring five new coal-bed methane (CBM) blocks. These blocks are located across West Bengal, Madhya Pradesh, and Telangana, adding substantial new acreage and resources. The acquisition is a strategic move to bolster India's domestic natural gas production.

The newly acquired blocks encompass approximately 1,281 square kilometers, with an estimated 6.6 trillion cubic feet of gas-in-place. These contracts were awarded under the government's Special CBM bidding rounds of 2025 and 2026, with contracts signed on Thursday. This expansion reinforces Essar's existing operations in West Bengal and Madhya Pradesh and establishes a new presence in Telangana.

Pankaj Kalra, CEO of Essar Oil & Gas, highlighted the acquisition as a significant milestone, emphasizing the company's commitment to unlocking India's unconventional hydrocarbon potential. Essar aims to leverage its expertise and infrastructure to accelerate the development of these new resources.

The company already produces nearly 50 percent of India's CBM output, contributing significantly to the nation's energy security. This expansion aligns with India's broader goals to increase indigenous gas supplies and lessen reliance on imports, which currently meet about half of the country's consumption.