Hindustan Oil skyrockets ~9% on First Oil Production -; Gas Sales commencement

8 Jun 2022 , 10:20 AM

Hindustan Oil Exploration Company announced that the company has brought online both the wells D-1 and D-2 individually for production after successfully addressing the technical issues faced during pre-commissioning operations.

HOEC’s counter jumped 9.23% so far in today’s trade at Rs213.60 against its previous close of Rs195.55 on the BSE.

The company also commenced Gas sales to GSPC from ONGC’s Gas Processing Terminal at Hazira.

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

Currently, the D-1 Oil well on production is being taken up at lower rates for safe stabilization of all operational parameters. Produced oil is being channelized through a pipeline to a HOEC group-owned Floating Storage Offloading vessel (FSO. FSO can store over six months of production.

HOEC is the first Indian private operator to complete a green field development in Mumbai Offshore Region. HOEC places on record its deep appreciation and gratitude for the excellent support extended by DGH and ONGC.

HOEC’s scrip opened at Rs214.80 and has touched a high and low of Rs224.40 and Rs210.25 respectively.