Essar Oil & Gas to Invest $100 Million in Raniganj East CBM Block, Aiming for 5 MMSCMD Production by 2028
Essar Oil and Gas Exploration & Production Ltd is set to invest $100 million in its Raniganj East coal bed methane block in West Bengal, aiming to increase production from 1 MMSCMD to 5 MMSCMD by 2028. The block, which contains an estimated 4 trillion cubic feet of CBM resources, will also see the introduction of pilot projects for horizontal wells. Additionally, Essar is exploring shale gas potential in collaboration with IIT Bombay and the University of Utah.
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Essar Oil and Gas Exploration & Production Ltd plans a $100 million investment in a drilling program at its Raniganj East coal bed methane (CBM) block in West Bengal. This initiative aims to significantly boost natural gas production from the current output of approximately 1 million standard cubic metres per day (MMSCMD), making it India's largest CBM-producing block.
The Raniganj East block holds an estimated 4 trillion cubic feet (TCF) of in-place CBM resources. Essar has invested over ₹6,000 crore to date, drilling 454 wells and constructing over 350 km of pipeline.
The new program will include pilot projects for horizontal CBM wells, with a target to increase production to around 5 MMSCMD by 2028. The company is also assessing shale gas potential in the area, having conducted studies with IIT Bombay and the University of Utah.
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