Limited Participation in Latest Coal Bed Methane Licensing Round
CBM licensing round draws few bidders
The Economic Times
Image: The Economic Times
In the recent coal bed methane (CBM) licensing round, only three companies participated, resulting in a lack of competition for most blocks. Of the 13 blocks, seven received no bids, while only two attracted competitive offers. This reflects ongoing challenges in attracting explorers despite more favorable terms.
- 01Only three companies participated in the latest CBM licensing round.
- 02Seven out of 13 blocks received no bids.
- 03Only two blocks saw competitive bidding.
- 04Reliance Industries and Essar Oil submitted three bids each.
- 05Oil India placed two bids in the round.
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The recent coal bed methane (CBM) licensing round conducted by the Directorate General of Hydrocarbons (DGH) revealed a lack of interest from bidders, with seven out of 13 blocks receiving no bids at all. Only three companies participated: Reliance Industries, Essar Oil and Gas Exploration and Production, and Oil India. Despite the introduction of more liberal terms to attract explorers, the results were disappointing. Reliance and Essar each submitted three bids, while Oil India placed two bids. Competitive bidding was limited to just two blocks, where Essar will compete against Reliance in one block, and Oil India will contest another. This trend follows the previous Special CBM Bid Round 2025, where one of the three blocks on offer also received no bids, highlighting ongoing challenges in the sector.
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The limited participation in the CBM licensing round could hinder future investments in the energy sector, potentially affecting energy supply and prices.
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