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 CBM exploration and supports its efforts to expand into unconventional hydrocarbon resources.
The block covers 272.14 square kilometres and forms part of OIL’s broader strategy to diversify its exploration portfolio and contribute to India’s energy security.
CBM Exploration Targets Singrauli Coalfield
The signing ceremony was attended by Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas; Dr Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas; and V. Ponnuraj, Director General of the Directorate General of Hydrocarbons (DGH). Oil India was represented by Director (Operations) Trailukya Borgohain and his team.
According to the company, the block has promising geological prospects, with coal seams expected at depths of approximately 600–800 metres and an average seam thickness of around 40 metres. These characteristics provide a basis for further assessment of the area’s CBM potential.
Oil India Resumes Unconventional Hydrocarbon Exploration
Coal Bed Methane is a form of natural gas found within coal seams and is classified as an unconventional hydrocarbon resource. OIL’s return to this segment reflects its focus on exploring additional domestic sources of natural gas and diversifying its energy portfolio.
The Revenue Sharing Contract marks an important step in the company’s renewed CBM exploration efforts in the Singrauli region.
Further exploration and assessment will be required to establish the block’s commercially recoverable potential and determine its contribution to India’s domestic energy supply.
