Hindustan Oil Exploration Company Ltd(HINDOILEXP)

NSE: HINDOILEXPBSE: 500186

₹ 160.6-2.52%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,124 crWebsite: www.hoec.comUpdated: 24 Oct 2026

About

Hindustan Oil Exploration Company Ltd (HOEC) is an Indian upstream oil and gas exploration and production company operating across four active asset clusters: the offshore B-80 block in the Mumbai offshore basin, the Dirok gas field in Assam, the Kharsang oilfield in Arunachal Pradesh, and onshore Cambay basin blocks in Gujarat. In FY26, the company reported consolidated revenue of Rs 263.15 crore and net production of 2,329 BOEPD, with proved reserves (1P) of 40.58 MMBOE as of April 2026. HOEC holds 100% participating interest in B-80 following its acquisition of co-partner AEPL's 40% stake in FY26.^[1][2][3]

Producing assets

B-80 (Mumbai offshore, 100% HOEC): produced 1,103 BOEPD in FY26 and 605 BOEPD in Q1 FY27 (270 bbl/d oil + 1.82 MMSCFD gas); output fell from Q4 FY26 levels (377 bopd oil, 2.8 MMSCFD gas) due to higher water cut on one well.^[2][3]
Dirok gas field (Assam): produced 15.424 MMSCFD in Q1 FY27 vs. field potential of ~40 - 45 MMSCFD; pipeline evacuation capacity degraded to ~1.1 - 1.3 MMSCMD against a design of 2.5 MMSCMD.^[3]
Kharsang oilfield (Arunachal Pradesh): gross production raised from 325 BOPD to 726 BOPD after a 9-well Phase-1 campaign in FY26; Q1 FY27 net production was 655 BOPD.^[2][3]
PY-1 (offshore Tamil Nadu): produced only 61 BOEPD (0.3 MMSCFD gas) in Q1 FY27; PSC extended to October 2030 following a PetroVietnam study validating redevelopment potential.^[3][2]

Reserves

1P (proved) net reserves: 40.58 MMBOE as of April 1, 2026.^[2]
2P (proved + probable) net reserves: 62.32 MMBOE as of April 1, 2026.^[2]
B-15 block (DSF award): independently estimated at 16 MMBOE reserves; petroleum lease obtained March 2026; FDP concepts under evaluation.^[3]

Key operating numbers

Consolidated net production: 2,329 BOEPD in FY26 (gross: 5,251 BOEPD); net production was 2,491 BOEPD in Q3 FY26.^[2][4]
Lifting cost (opex per BOE): $28.4/barrel in FY26 vs. $28.6/barrel the prior year.^[2]
Average crude/condensate realization (standalone): $95.5/barrel in Q1 FY27.^[3]
B-80 gas realization: $16.5/MMBTU in Q1 FY27; Dirok gas realization: $12.5/MMBTU in Q1 FY27.^[3]
Net gearing: 0.04x in Q1 FY27 (also 0.04 at March 2026).^[3][2]

Customers and offtake

B-80 crude: ~417,000 barrels sold to HPCL in September 2025 under a COSA; sale reversed after HPCL raised a contamination claim; crude (~118,000 - 150,000 barrels) being resold to third-party buyers, with ~15% liquidated and INR 4 - 6 crore losses incurred as of the Q1 FY27 call.^[3][5][2]
Dirok gas: sold to downstream buyers via the DNPL pipeline; offtake constrained by pipeline availability, not field supply - field capacity of up to 45 - 55 MMSCFD far exceeds current sales of 15.424 MMSCFD in Q1 FY27.^[3][5]
PY-1 gas: new directional well drilling contingent on securing a take-or-pay agreement with IOCL or GAIL to prevent reservoir damage from shut-in wells.^[3]

Expansion and capex

B-80 FY27 capex revised up to USD 45 million for 2 workovers (D1 and D2, targeted Q3 FY27 post-monsoon, rig mobilisation October 2026) plus 3 new development wells in Q4 FY27 targeting 1,000 - 1,500 bbl/well; debt financing being arranged.^[3]
Kharsang Phase-2: 9 additional development wells (4 firm + 5 to mature) to be drilled in FY27, targeting a further doubling of gross production.^[3][2]
Dirok DNPL full capacity restoration targeted December 2026 via hot-tap works; AGCL hot-tap contract award described as imminent; pipeline capacity to recover from ~1.1 - 1.3 MMSCMD to 2.5 MMSCMD.^[3]
Kharsang gas monetisation: 24 km pipeline to Oil India Bordumsa tie-in planned; route survey tender closed; management guided 14 - 18 months to lay the pipeline (target ~December 2027).^[3]
B-15 block: FDP concept selection underway (3 - 4 concepts evaluated, including ONGC platform tie-back); first well drilling scheduled for FY28.^[3]
Overall production growth trajectory: 10,000 - 11,000 BOEPD net by June 2027; ~22,500 BOEPD net by June 2028; ~32,000 BOEPD net by June 2029.^[2]
Total capex programme: Rs 1,500 crore, covering 18 shallow + 3 deep wells in Kharsang, 4 in Dirok, 2 in Greater Dirok, 2 each in Asjol and Palej, and 10 offshore wells; funded via internal accruals and a Rs 250 crore term loan (rated IND A by India Ratings).^[5]

Exploration pipeline

North Dirok-1 (ND-1) exploration well: civil works at drill site completed; spud targeted Q4 FY27.^[3]
Block-19: first exploration well targeted Q4 FY27 / Q1 FY28.^[3]
Block AA-ONHP-2017/19 (Greater Dirok): environmental clearance and 2-year extension from December 2025 received; approach road and drill pad construction being planned.^[4]
Kharsang virgin gas: three wells tested 3.4 - 8.6 MMSCFD but shut-in for lack of evacuation infrastructure; 24 km pipeline route survey underway.^[3]

Recent developments

B-80 100% ownership: HOEC acquired AEPL's 40% stake (Adbhoot Energy) in B-80 in FY26, raising its participating interest to 100%; an exceptional gain of INR 32 crore was booked on fair valuation.^[2]
HPCL crude dispute: ~INR 260 crore crude sale reversed after quality dispute; management guided total loss at ~7 - 10% of invoice value; full stock clearance targeted end-October / early-November 2026.^[3][2]
Leadership change: new MD & CEO (Baroruchi Mishra), CFO (Allen Joseph Andrade), Head of Offshore Operations (Sanjay Kundu), and Principal Reservoir Consultant (Parthasarathy Bandopadhyay) all joined in FY26.^[2]
PetroVietnam (PVEP-ITC) study validated HOEC's geological findings at PY-1 and recommended drilling 2 directional wells targeting the fractured basement reservoir; PSC extended to October 2030.^[2]
B-80 compressor reconfigured from parallel to series trains in Q1 FY27 to sustain flow at lower suction pressure following water-cut-driven production decline.^[3]

Market Cap

₹2,124 Cr

High / Low

₹202 / 118

Stock P/E

84.5

Price / Book

1.5

Book Value

₹105

EPS

₹4.7

No. of Shares

13.22 Cr

ROCE

2.5%

ROE

4.6%

OPM

13.5%

Debt / Equity

0.04

Sales

₹263 Cr

Net Profit

₹63 Cr

Promoter holding

0.0%

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