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HOEC to Start Commercial Production from December 2020

Hindustan Oil Exploration Company (HOEC) will start commercial production from its discovered small field (DSF) block in Mumbai, Maharashtra, by December 2020.

 

The company successfully drilled its first well in the block earlier in February 2020 and will become the first to start production of crude oil under the DSF auction rounds. HOEC’s focus is on monetising the discovered resources. It expects to start production in B-80 (the block) by December 2020. The overall production is expected to double once discovered field production starts.

 

The production from discovered field comes at a time when several blocks under the first and second rounds of DSF are stuck. The field development plan for B-80 consists of drilling two wells to produce oil and gas. HOEC bagged the block under the DSF Bid Round 2016, when 22 companies were given 31 contract areas. It saw 15 new entrants in the sector.

 

Earlier, HOEC was in talks with the Oil and Natural Gas Corporation (ONGC) for sharing the state-run major’s pipeline infrastructure for evacuation of oil and gas from the block. The plan was to transport gas to ONGC’s Hazira plant and oil to its Uran plant.

 

HOEC holds 50 percent participating interest in the block, along with Adbhoot Estates. The companies had reportedly lined up an investment of USD 60 million for the block.

 

DSF auctions were done under the Hydrocarbon Exploration & Licensing Policy (HELP) regime that replaced the New Exploration and Licensing Policy. During the second round of DSF, 25 contract areas were awarded.

 

The company is targeting a doubling of its net production to around 5,000 barrels of oil equivalent per day by the H2/2020, from 3,233 barrels of oil equivalent per day reported at the end of the Q3/FY20.

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