### **Overview** Hindustan Oil Exploration Company Limited (HOEC) is a pioneering Indian private-sector player in oil and gas exploration and production (E&P), founded in 1983 as the first private company to enter the sector. Headquartered in Mumbai, HOEC maintains a sharp strategic focus on the rapid development of discovered resources across India, leveraging its strong technical expertise, asset-light operating model, and fast-track development capabilities to de-risk exploration and accelerate monetization. As of November 2025, HOEC continues to execute an aggressive growth strategy centered on low-cost, short-cycle projects across key petroleum provinces, with a diversified portfolio of onshore and offshore assets in four of India’s seven producing basins: North-East, Cambay, Mumbai Offshore, and Cauvery Offshore. --- ### **Strategic Positioning & Operational Footprint** - **India-Focused Portfolio**: HOEC operates in **10 out of 11 blocks with discovered or producing resources** in the country and holds operatorship in most of its assets, ensuring strategic control and faster decision-making. - **Geographic Diversification**: The company has a balanced operational presence across: - **3 offshore blocks** (Mumbai Offshore, Cauvery Offshore, B-80) - **8 onshore blocks**, primarily in the North-East (Dirok, Kharsang, etc.) and Cambay Basin (Palej, Asjol, North Balol). - **Leading Footprint in Key Basins**: HOEC has an industry-leading presence in high-potential regions such as the **North-East (Assam, Arunachal Pradesh)** and **Cambay Basin (Gujarat)**. --- ### **Production & Reserves Base** - **Record Production**: FY2023 marked a historic milestone with **gross operated production exceeding 10,000 barrels of oil equivalent per day (boepd)**, a significant jump from ~500 boepd in FY15. - **B-80 Offshore Field (Mumbai High)**: - Achieved **first commercial production under India’s Discovered Small Fields (DSF) policy** in June 2022. - Now **100% owned** following acquisition of AEPL’s 40% stake. - Current quarterly output: **60,544 barrels of oil and 0.44 Bcf of gas** (FY26 Q2). - Utilizes a unique indigenous infrastructure: Mobile Offshore Processing Unit (MOPU), Single Point Mooring (SPM), and a 900,000-barrel capacity Floating Storage Offshore (FSO). - **Dirok (North-East)**: - Average daily gas sales: **30 mmscfd (Q1 FY23)**. - Recently tested **Sand 9 and Sand 10** with potential for additional reserves; Sand 9 produced **6 mmscfd via a ½-inch choke**. - Connected directly to the Duliajan marketing hub; pipeline expansion underway. - Secured India’s **first e-auction for natural gas in the North-East**, achieving prices **>$1/MMBtu above government rates**. - **PY-1 Offshore (Cauvery Basin)**: - Unique **offshore fractured granitic basement reservoir**—the only one in India. - Existing platform with 8 slots, 4 drilled wells, 56 km sub-sea pipeline, and 55 mmscfd processing capacity. - **PSC extended until October 2030**. - Seismic reprocessing identified **three new development locations**, validated by third-party experts. - **Infra-ready**: Processing and evacuation systems already in place—development can begin swiftly post-clearance. --- ### **Recent Developments (2025 Updates)** #### **1. Strategic Acquisitions & Block Additions** - **Block B-15 (Mumbai Offshore)**: - Acquired 100% interest after emerging as **sole bidder in DSF Special Bid Round 2024**. - Covers **332.4 sq km**; discovered via B-15A-1 (1.66 mmscfd gas, 1,833 bopd) and B-15-2 (0.91 mmscfd, 1,151 bbls). - Full 3D seismic coverage; shallow water depth (~40 feet) enables **low-cost development**. - Development plan includes **four wells**. - **Block Umatara (North-East)**: Strategic stake secured, expanding regional footprint. #### **2. North-East India Growth Engine** - **Kharsang Block**: - 35% participating interest through wholly-owned subsidiary **GeoEnpro Petroleum Limited**. - Environmental clearance granted for **40 development and 5 exploration wells**. - Phased 18-well drilling program underway targeting Upper Girujan; deeper **Lower Girujan, Tipam, and Barail formations** to follow. - Gas monetization will improve with **North-East Gas Grid connectivity to the National Grid**. - **Greater Dirok (AA-ONHP-2017/19)**: - Applied for one-year work program extension. - GTO issued for first exploration well; supported by Pre-Stack Depth Migration (PSDM) data showing improved prospectivity. - Civil and access road construction ongoing. #### **3. Offshore Growth & Redevelopment Plans** - **PY-1 Field**: - **Petro Vietnam** recommended **two infill, one appraisal, one exploration well**; drilling scheduled for Q4 FY25 (Oct–Dec 2025). - Successful wells can be integrated **immediately** using existing infrastructure. - Gas-water contact validation underway with specialists from UK and Vietnam. - **B-80 Offshore**: - Plans underway to **work over D1 well** and evaluate a **minimal facility platform (MFP)** to drill **three new wells**. - Target: Enhance plateau production and reservoir longevity. - **Three-Year Capex Program**: - **₹1,000 crores** committed (funded via internal accruals and borrowings) to boost production, grow reserves, and accelerate drilling. #### **4. Monetization & Market Strategy** - **Gas Pricing**: - Secured new **GAIL term sheet at $6.75/MMBtu (GCV)**, up from $3.66. - Western region gas prices aligned with imported LNG; realized **$10.78/MMBtu in Q1 FY25**. - **E-Auctions**: - Proven success in pricing flexibility—linking gas prices to Brent crude. - Crude oil e-auction platform operational for parcels >200,000 barrels. - **Sales Infrastructure**: - B-80 gas sold via **IGX at Hazira** using ONGC/GAIL infrastructure. - Dirok gas pipeline expansion in progress; future capacity for **55 mmscfd**. --- ### **Business Model & Competitive Edge** - **Asset-Light & Lean Model**: - Operates with **<100 employees**. - Focuses on core **G&G, drilling, and project management**; outsources non-core operations to global partners (e.g., Expro, Baker Hughes). - **Fast-Track Development Expertise**: - First private company to **convert a jack-up rig into an MOPU** and drill subsea wells offshore India. - Delivered **B-80 field from discovery to production in record time**. - **Low-Cost Operator**: - Targets **self-funding through sustainable cash flows**. - Achieved **first-ever net profit > ₹225 crores (FY23)** and record turnover. --- ### **Environmental, Social & Regulatory Compliance** - All subsidiaries compliant with HSE standards. - Secured **EC for Kharsang, Cambay, and Duliajan pipeline projects**. - **Forest and CRZ clearances** obtained for key expansions. - Proactive stakeholder engagement in ecologically sensitive areas (e.g., forest corridor in Assam).