Hindustan Oil Exploration Company Limited (NSE:HINDOILEXP) filed its Q1 FY2026-27 earnings call presentation with NSE and BSE on 13 August 2026, pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, disclosing asset-wise operational updates, a crude oil sales dispute with HPCL, and capital expenditure plans across its upstream portfolio.
Key Highlights
- B80 block recorded Q1 FY27 average production of 605 BOEPD, with workover of two existing subsea wells and drilling of three new wells targeted in Q3/Q4 FY27, at an estimated FY27 capex of USD 45 million.
- HOEC agreed to cancel the crude oil invoice to HPCL for approximately 417,000 barrels supplied in August 2025 and is reselling the same oil to third parties, with full quantity expected to be sold by end-October or early November 2026.
- Dirok block produced 15.424 MMSCFD in Q1 FY27, constrained to approximately one-third of its potential due to limited gas evacuation infrastructure; the revised Field Development Plan has been approved by MoPNG, securing the block through 2035.
- B15 block holds reserves of 16 MMBOE as of 1 July 2026, with a Field Development Plan in progress and drilling expected to commence in FY28 following petroleum lease obtained in March 2026.
About the Company
Hindustan Oil Exploration Company Limited (NSE:HINDOILEXP), headquartered in Vadodara, Gujarat, is an upstream oil and gas exploration and production company. It holds participating interests in offshore blocks in the Mumbai High and Cauvery basins and onshore blocks in Assam-Arakan and Cambay basins. The company operates under the DSF, Pre-NELP, and Special DSF 2024 regimes.
Announcement in Detail
The presentation filed on 13 August 2026 covers four operational geographies. At B80, the company has 100% participating interest and holds reserves of 35.48 MMBOE as of 1 July 2026. Average Q1 FY27 production was 605 BOEPD, with 1,18,323 barrels of stock held on the MOPU at quarter-end. The company is engaging with multiple entities to raise funds for the USD 45 million estimated FY27 capex.
On the HPCL dispute, HOEC supplied approximately 417,000 barrels to HPCL in August 2025; HPCL subsequently raised concerns about organic chlorides in the crude stream. Both parties agreed to cancel the invoice and resell to third parties, with sales ongoing. The filing notes that the approximately Rs 260 crore of sales revenue held up due to the dispute caused deferral of well-drilling investments. At Kharsang in the North East, oil production was ramped up by 2x following a nine-well campaign in a single financial year.
Impact on Investors
Investors will note that the approximately Rs 260 crore in revenue held up due to the HPCL crude dispute led to a deferral of planned well-drilling investments, directly affecting the pace of production ramp-up at B80. The filing shows that resales to third parties are ongoing, with full resolution anticipated by end-October or early November 2026.
Shareholders will observe that the USD 45 million FY27 capex at B80 is subject to fund-raising discussions with unspecified entities, as disclosed in the presentation. The disclosed terms indicate that until such financing is secured and the HPCL matter is fully resolved, capital deployment timelines remain contingent on external factors.
Sector / Market Context
India's upstream oil and gas sector operates under the Hydrocarbon Exploration and Licensing Policy (HELP), with the Discovered Small Fields (DSF) regime specifically designed to monetise marginal fields. The Petroleum and Natural Gas Ministry has, per publicly available disclosures, been actively reviewing PSC extensions for legacy blocks, a process directly relevant to HOEC's Dirok and Cambay assets.