Oil India Ltd (OIL), which operates under the ownership of the government, has inked a revenue-sharing pact for exploring CBM in a 272.14 sq km area in the Singrauli coalfield area.
The company's statement revealed that it made a vital breakthrough by signing the Revenue Sharing Contract (RSC) for Special Coal Bed Methane (CBM) Block SR-ONHP-(CBM)-2026/1 on 15-10-2026.
It was stated in the press release by the oil company that the signing of this contract is a major development in our exploration activities.
Covering an area of 272.14 sq km, the block holds geological features deemed favourable for exploring methane by the corporation.
As per the statement released, the geology of this area displays excellent features for coal mines at depths ranging between 600-800 meters with an average seam width of 40 meters. Coal-bed methane is the term used to describe natural gas reserves present within coal mines. Exploration of CBM provides another avenue for producing domestic gas, enabling India to ensure diversification of energy sources.
The development assumes significance since Oil India intends to explore new areas in addition to oil and gas, including unconventional hydrocarbons.
Oil India referred to the signing ceremony as a "landmark return to CBM exploration." The firm emphasised its efforts toward exploiting India’s unconventional hydrocarbon reserves.
