Hindustan Oil Exploration Company Limited (NSE:HINDOILEXP) filed the transcript of its Q1 FY2026-27 earnings conference call on 20 August 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The call was held on 13 August 2026 and was led by Managing Director and CEO Baroruchi Mishra and CFO Allen Joseph Andrade.
Key Highlights
- Production at the B-80 offshore asset was impacted by a higher water cut, with workovers of wells D1 and D2 scheduled for rig mobilisation by October 2026.
- The newly awarded B15 block carries stated reserves of 16 MMBOE, with field development plan concepts under evaluation and drilling planned for FY28.
- Kharsang onshore operations completed nine wells in the first phase, doubling production year-on-year, with a second phase of nine wells imminent following rig identification.
- Cambay Basin assets in Gujarat recorded a 5% to 6% production increase in Q1 FY27, with management targeting a 20% to 30% improvement going forward through debottlenecking and new technology.
About the Company
Hindustan Oil Exploration Company Limited (NSE:HINDOILEXP) is an upstream oil and gas exploration and production company headquartered in Vadodara, Gujarat, with a registered office also in Chennai. The company holds operated and non-operated interests across offshore blocks in the Mumbai offshore region and onshore fields in Assam and the Cambay Basin in Gujarat. Its portfolio includes assets such as B-80, PY-1, Dirok, Kharsang, and the Asjol, Balol, and Palej fields.
Announcement in Detail
The transcript covers management commentary on each asset in the company's portfolio. At B-80, the flagship offshore block, a rising water cut reduced output during the quarter. To sustain production, the compressor train configuration on the Mobile Offshore Production Unit was modified to allow operation at lower suction pressure, enabling wells to continue flowing as reservoir pressure declines. Rig discussions for the D1 and D2 well workovers are at final award stage, with mobilisation expected by October 2026.
At the PY-1 platform on the East Coast, the company has awarded a contract for rig-less well intervention to restore near-term output. New well drilling, previously planned for Q4 FY27, is now conditional on securing a take-or-pay agreement with IOCL or GAIL to prevent newly drilled wells from being shut in and watered out. In Assam, the Dirok field continues to produce at only 50% to 70% of capacity because of pipeline evacuation constraints, while the AGCL-operated DNPL line undergoes capacity restoration work through hot-tapping.
Impact on Investors
Investors will note that production shortfalls at both B-80 and PY-1 during Q1 FY27 reflect ongoing operational challenges rather than a structural change in reserve base. The filing shows that the resolution of the HPCL crude offtake issue at B-80 has moved to third-party resale, which shareholders will observe introduces an additional intermediary step in revenue realisation. The disclosed terms indicate that new well drilling at PY-1 remains contingent on offtake commitments, meaning capital deployment timelines for that asset carry execution risk tied to buyer negotiations.
The filing also shows that virgin gas discovered in two Kharsang wells cannot currently be monetised due to the absence of pipeline connectivity, with a route survey tender having just closed at the time of the call. Shareholders will observe that regulatory clearances through forest areas add uncertainty to the six-to-eight-month pipeline timeline cited by management, representing a factor that could affect the pace of reserve monetisation from that asset.
Sector / Market Context
India's domestic crude oil production has remained broadly flat in recent years, with the Ministry of Petroleum and Natural Gas reporting output of approximately 29 million metric tonnes in FY25. The government's emphasis on reducing import dependence has reinforced policy support for upstream exploration activity, with SEBI and the Directorate General of Hydrocarbons encouraging greater private sector participation in blocks awarded under the Open Acreage Licensing Policy.