Hindustan Oil Exploration stock dips 6% after updating on western offshore project

Offshore Installation, a jack-up rig (Key Gibraltar) converted as an offshore processing unit has been successfully installed in the field.

May 25, 2021 03:05 IST India Infoline News Service

Hindustan Oil Exploration on Tuesday announced the status of installation of facilities completed in B-80 field and installation works delayed due to cyclone and the onset of monsoon.

Here are the key highlights as per the regulatory filing:

1. Offshore Installation, a jack-up rig (Key Gibraltar) converted as an offshore processing unit has been successfully installed in the field and is ready to receive the oil and gas for processing from the subsea wells.

2. Flow lines have been laid and connected to the wells and the offshore processing unit. Similarly, the control umbilical to the trees of subsea wells and the processing unit are duly laid, connected and tested.

3. Gas export pipeline from the offshore processing unit to the existing gas pipeline of ONGC to Hazira Terminal has been laid and hot tapped with the ONGC line, which completes the requirements of gas evacuation.

4. Oil export pipeline from the offshore processing unit to the Pipeline End Manifold (PLEM) has been completed and connected to the PLEM. The under-buoy hose is installed and ready to connect to the Calm Buoy.

5. Calm Buoy was to be moored with six pile anchors and all the six piles have been driven to the required depth with anchor chains and are ready to moor the calm buoy.

However, the company said that consequent to the cyclone and the onset of monsoon, the connection of anchors chains to the calm buoy was not possible.

"We had to evacuate due to cyclone Tauktae while making the first attempt to connect the anchor chains to buoy to ensure the safety of personnel and the vessels in operation," Hindustan Oil adds.

Also, the company said that after the cyclone, a second attempt was made to connect the anchor chains to the buoy to complete the mooring, which was not possible due to poor underwater visibility and the picking up of adverse weather due to the onset of monsoon.

That said, Hindustan Oil Exploration said, "Until the calm buoy is installed and pre-tensioned with anchors, the Floating Storage Offshore (FSO) cannot be moored to receive and store the oil. Therefore, the production cannot commence till the calm buoy is fully moored and the hose is connected to the calm buoy. This work will take about 7-10 days offshore and is expected to be completed once the monsoon is over. Therefore, the first oil from the field is delayed to the third quarter of this financial year."

At around 3.10 pm, Hindustan Oil Exploration was trading at Rs98.55 per piece down by 5.7% on Sensex.

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