HOEC - First Oil production and Gas sales commences from Block MB/OSDSF/B80/2016 (B-80)

Hindustan Oil Exploration Company Limited (HOEC) has announced that both the wells D-1 and D-2 have been individually brought online for production after successfully addressing the technical issues faced during pre-commissioning operations. Gas sales to GSPC commenced from ONGC's Gas Processing Terminal at Hazira.

Prior to commencement of sales, gas produced from well D-2 was processed to meet the specifications and packed into ONGC pipeline from May 31, 2022 onwards. Subsequently, Gas Transportation Agreement (GTA) between ONGC and HOEC was executed on June 03, 2022.

Currently, D-1 Oil well on production is being flowed at lower rates for safe stabilisation of all operational parameters. Produced oil is being transferred through pipeline to a HOEC group-owned Floating Storage Offloading vessel (FSO). FSO has the capacity to store over six months of production.

Processed gas is being exported through the ONGC pipeline network to its Hazira Gas Processing Terminal. ONGC then redelivers B-80 gas into the flagship HVJ pipeline owned by GAIL. GSPC then offtakes the B-80 gas to deliver it to the end consumers through its vast pipeline network. We expect the entire production and sales operations to stabilise over the next few weeks.

HOEC is pleased to be the first Indian private operator to complete a green field development in Mumbai Offshore Region. B-80 has earned the distinction of being the first offshore field on production, under the path-breaking Discovered Small Field (DSF) Policy of the Government of India with a Revenue Sharing Model. DSF encourages participation of private sector to increase domestic production both from offshore and onshore discovered fields in India.

HOEC places on record its deep appreciation and gratitude for the excellent support extended by DGH and ONGC.

Block MB/OSDSF/B80/2016 Data:

Block MB/OSDSF/B80/2016 is spread over 56 Sq. Kms. area in Western Offshore and was awarded under the First Discovered Small Field (DSF) Bid Round 2016 on March 27, 2017. HOEC is the Operator of this field with 60% Participating Interest and 40% is held by Adbhoot Estates Private Limited. Under the terms of the Revenue Sharing Contract (RSC), the oil and gas produced from this Block enjoys marketing and pricing freedom.

Shares of Hindustan Oil Exploration Company Limited was last trading in BSE at Rs. 195.55 as compared to the previous close of Rs. 194.45. The total number of shares traded during the day was 196607 in over 5021 trades.

The stock hit an intraday high of Rs. 204.40 and intraday low of 193.35. The net turnover during the day was Rs. 38974594.00.

Source : Equity Bulls

Keywords

HindustanOilExplorationCompany INE345A01011 HINDOILEXP HOEC B80 GSPC GasProcessingTerminal Hazira