Hindustan Oil Exploration Company update on B-80 gas e-auction

17 Mar 2022 , 01:33 AM

Hindustan Oil Exploration Company announced that pursuant to the techno-commercial evaluation e-auction to discover the gas price for sale of 03 mmscmd natural gas to be produced from B-80 was held on 08 March 2022 and Gujarat State Petroleum Corporation GSPC has emerged as the successful bidder The contract for offtake of gas on an immediate sale basis shall be entered with GSPC for a duration of 2 years and the monthly sales gas price in US$mmbtu will be calculated at 222Percentage of the previous month average Brent Crude Oil price in US$barrel A floor price of US$ 6mmbtu is applicable ie if in any month the calculated sales gas price is less than US$ 6mmbtu then a price of US$ 6mmbtu shall apply For example if the average Brent Crude Oil price of previous month is US$ 80barrel the applicable current month sales gas price will be US$ 1776mmbtu The Company is on track to commence commercial production of oil and gas from B-80 Block by end of March 2022