• Offshore Technology reported on 16 October 2026 that Essar Oil & Gas won five blocks of about 1,281 sq km in West Bengal, Madhya Pradesh and Telangana through the Special CBM Bid Rounds of 2025 and 2026.
• The 6.6 tcf figure is described as gas-in-place. It is not recoverable volume or proven reserves, and we found no independent certification.
• Two Raniganj blocks of about 330 sq km would join the existing Raniganj East area of about 500 sq km, giving about 830 sq km.
• The roughly 950,000 standard cubic metres per day of Raniganj output and the investment above $632.4m are company figures that we could not check against regulator data.
• The Godavari Valley blocks in Telangana are Essar's first entry into that basin, so they carry exploration risk.

Essar Oil & Gas has been awarded five coal bed methane blocks covering about 1,281 square kilometres across West Bengal, Madhya Pradesh and Telangana, according to Offshore Technology (16 October 2026). United News of India and The Hans India report the same award, with contracts signed on 15 October 2026. We found no ministry or Directorate General of Hydrocarbons release to check block-level figures against, so the numbers below are as reported. This is analysis, not trading advice.

What the 6.6 tcf figure does and does not say

Offshore Technology and UNI both give 6.6 trillion cubic feet as estimated gas-in-place for the five blocks. That is an estimate of what the coal seams hold, not recoverable volume or proven reserves. We saw no independent certification. Recovery from coal seams depends on permeability, water handling and well spacing. Until drilling data is published, the number shows the size of the opportunity as the company frames it, not future supply.

Raniganj is the near-term story

Offshore Technology reports two new West Bengal blocks of about 330 square kilometres beside Essar's existing Raniganj East area of about 500 square kilometres, for a contiguous area of about 830 square kilometres. It also cites Raniganj output of about 950,000 standard cubic metres per day, close to half of India's CBM production, and more than $632.4m committed. These are company figures that we could not check against regulator data.

Telangana and Madhya Pradesh carry more uncertainty

Offshore Technology describes the two Godavari Valley blocks as Essar's first entry into that basin, so reservoir quality there is untested for this operator. The single Singrauli block in Madhya Pradesh is described as reinforcing an existing presence. The reports we read give no block-level areas for either region and no work programmes or timelines. Any output would follow exploration and appraisal, not precede it.

Why it matters for India's gas balance

Offshore Technology says imported gas accounts for roughly half of India's gas consumption, which is why domestic unconventional supply draws policy attention. It also reports that the company has a longer-term target of supplying 5% of India's gas output, a corporate ambition we have not tested. The awards are better read as potential incremental domestic supply than as a change in the balance. The reports give no evidence on any effect on LNG purchasing.

What to watch next: a Directorate General of Hydrocarbons or ministry release confirming the block list and work programmes, first appraisal wells in the Godavari Valley, and whether Raniganj output rises as the larger footprint is developed. Until those appear, the awards are acreage and ambition, not production.