New Delhi: Oil India Limited (OIL) has signed a Revenue Sharing Contract (RSC) for Special Coal Bed Methane (CBM) Block SR-ONHP-(CBM)-2026/1 in the Singrauli Coalfield region. Signed on October 15, 2026, the agreement marks the company’s return to coal bed methane exploration and reinforces its commitment to diversifying India’s energy resources and strengthening national energy security.
OIL Signs CBM Block Contract in the Presence of Senior Officials
The Revenue Sharing Contract for the Special CBM Block was signed on October 15, 2026, in the presence of Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas; Dr. Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas (MoPNG); and V. Ponnuraj, Director General of the Directorate General of Hydrocarbons (DGH).
Oil India Limited was represented at the signing ceremony by Trailukya Borgohain, Director (Operations), along with his team. The participation of senior government officials highlighted the importance of expanding domestic hydrocarbon exploration and developing India’s unconventional energy resources.
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Singrauli CBM Block Shows Promising Geological Potential
Located in the Singrauli Coalfield region, the Special Coal Bed Methane Block covers an area of 272.14 square kilometres. According to OIL, the block has promising geological characteristics that could support coal bed methane exploration.
The expected coal seam depths range from approximately 600 to 800 metres, with an average seam thickness of around 40 metres. These geological features provide a basis for further exploration and assessment of the area’s coal bed methane potential.
However, additional exploration, technical evaluation and resource assessment will be necessary to establish the quantity of commercially recoverable methane and determine the block’s future contribution to domestic natural gas production.
What Is Coal Bed Methane (CBM)?
Coal Bed Methane (CBM) is a form of natural gas found within coal seams. It is classified as an unconventional hydrocarbon resource and can serve as an additional source of natural gas for domestic consumption and industrial applications.
Exploring CBM resources can help diversify a country’s natural gas supply beyond conventional oil and gas fields. Developing these resources may also support more efficient utilisation of domestic coal-bearing formations, subject to technical feasibility, commercial viability and environmental considerations.
OIL’s Return to CBM Exploration Supports Energy Diversification
OIL has described the signing of the Special CBM Block contract as a landmark milestone in its strategic energy diversification journey. The agreement marks the company’s renewed focus on coal bed methane exploration and its efforts to unlock India’s unconventional hydrocarbon potential.
By expanding its exploration activities beyond conventional hydrocarbon resources, OIL aims to identify additional domestic sources of natural gas. The initiative aligns with India’s broader objective of strengthening energy security by developing indigenous energy resources and diversifying its energy mix.
The Singrauli block represents a new opportunity for OIL to assess the potential of coal bed methane resources. Its actual contribution to India’s energy supply will depend on the results of subsequent exploration and the commercial feasibility of production.
Key Highlights of OIL’s Special CBM Block
- Contract Signing Date: October 15, 2026.
- Block Name: SR-ONHP-(CBM)-2026/1.
- Location: Singrauli Coalfield region.
- Total Area: 272.14 square kilometres.
- Expected Coal Seam Depth: Approximately 600–800 metres.
- Average Coal Seam Thickness: Around 40 metres.
- Key Objective: Explore unconventional hydrocarbon resources and support India’s domestic natural gas supply.
About Oil India Limited (OIL)
Oil India Limited (OIL) is a leading Indian public sector energy company engaged in the exploration, development and production of crude oil and natural gas. The company also has operations across various segments of the energy value chain and contributes to India’s energy security.
