Essar Subsidiary to Invest ₹3,000 Crore to Boost CBM Output

Essar Oil and Gas Exploration and Production (EOGEPL) is set to inject a substantial sum of ₹3,000 crore into its operations to ramp up gas production to 5 MSCMD by FY29 from its Raniganj coal bed methane (CBM) block in West Bengal.

Currently holding a dominant position, EOGEPL contributes approximately 65% to India's total CBM production. With an initial investment of ₹5,000 crore, including ₹500 crore allocated for well excavation by FY25-end, the company is now poised for further expansion.

As part of the Essar Group, EOGEPL aims to bolster its output significantly, targeting 5% of India's gas production within the next five years through an additional investment of ₹2,500 crore.

CEO Pankaj Kalra outlined the company's strategic approach, stating, "We are following a systematic approach to well-revival through world-class technology to enhance production. We will be drilling 200 wells by FY25-end and then another 200 wells by FY27 to increase gas production."

To meet the FY25 target, EOGEPL plans to invest ₹700 crore, with an additional ₹1,800 crore earmarked for drilling an additional 200 horizontal wells by FY27-end to further enhance gas output.

HBL