Oil India returns to CBM with Singrauli contract
after close2 sources ↓machine-written, see hownot a recommendation
- OIL close
- ₹445.00
- On the day
- -0.09%
- Futures OI, short build-up
- +0.9%
- Put-call ratio
- 0.62
- Max pain
- ₹450.00
Oil India signed a revenue-sharing contract on 15 Oct 2026 for a 272.14 sq km special coal-bed methane block in the Singrauli coalfield region. The agreement covers Block SR-ONHP-(CBM)-2026/1 and marks the state-owned energy company’s return to CBM exploration. The block has coal seams at approximately 600–800 metres and an average thickness of around 40 metres, according to the company’s release. The contract was disclosed through a regulatory filing on 18 Oct and reported on 19 Oct 2026. ⚡
The project supports Oil India’s effort to diversify beyond conventional oil and gas and develop domestic unconventional hydrocarbon resources. CBM production can add to India’s natural gas supply, although the commercial impact depends on exploration results, resource estimates, approvals, drilling activity and eventual production volumes. The agreement itself did not disclose a project value, reserves estimate or production timeline, so the immediate financial contribution remains undefined.
272.14 sq km block
600–800 metre seams
• Contract signed: 15 Oct 2026
• Average coal seam thickness: around 40 metres
• Location: Singrauli coalfield region
OI Charts data for 16 Oct showed the shares closing at ₹445, down 0.09% on the day, with volume of 624,878 shares. The stock was down 6.8% over 20 sessions and remained within a 52-week range of ₹395.60 to ₹531.00. In derivatives, futures open interest increased 0.9% to 14,394,800 shares, alongside a short build-up. The futures premium was 0.35%, while the put-call ratio stood at 0.62.
For the 27 Oct 2026 expiry, max pain was ₹450, with the largest call open interest at ₹450 and the largest put open interest at ₹480. These levels provide the immediate derivatives backdrop as the market assesses whether the CBM contract can develop into a measurable gas-production opportunity. The next material disclosures are exploration progress, drilling or appraisal results, reserve updates, and any production or investment timetable. 🛢️
The announcement also follows broader efforts to unlock India’s unconventional gas resources and could keep attention on domestic gas exploration and energy diversification. OI Charts data showed the stock up 0.3% over five sessions but down 0.1% over one session, indicating limited immediate price reaction before the later disclosure. ⛏️
Source: ET EnergyWorld and SarkariTel, 19 Oct 2026
Not investment advice. For informational purposes only.