Oil India Limited (OIL) has marked a significant milestone in its energy diversification strategy by signing a Revenue Sharing Contract (RSC) for a Special Coal Bed Methane (CBM) Block, designated as SR-ONHP-(CBM)-2026/1. The contract was signed on 15 October 2026, in a ceremony attended by prominent figures including Shri Hardeep Singh Puri, the Honourable Minister of Petroleum and Natural Gas, Dr. Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas, and Shri V. Ponnuraj, Director General of the Directorate General of Hydrocarbons. Representing OIL at the event were Director (Operation) Shri Trailukya Borgohain and his team.
The Special CBM Block is located in the Singrauli Coalfield region, covering an area of 272.14 square kilometres. It boasts promising geological prospects, with coal seam depths expected to range between 600 to 800 metres and an average seam thickness of approximately 40 metres. This venture marks OIL’s renewed commitment to exploring Coal Bed Methane, a move that underscores its focus on tapping into India’s unconventional hydrocarbon resources.
The signing of this contract is seen as a pivotal step in OIL’s efforts to enhance India’s energy security by diversifying its energy sources. The initiative aligns with the broader national strategy to unlock the potential of unconventional hydrocarbons, thereby contributing to a more sustainable and secure energy future for the country.
Analysts view this development as a positive signal for the Indian energy sector, highlighting the government’s support for initiatives that aim to expand domestic energy production. The involvement of high-level officials at the signing ceremony reflects the strategic importance of the project, which could pave the way for further investments in the sector. As OIL embarks on this venture, market observers will be keenly watching its progress and the potential impact on India’s energy landscape.
