PEER-GRADED ASSIGNMENT:
OIL AND GAS COMPANY PROFILE,
DUKE UNIVERSITY (COURSERA)
 
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 

COMPANY:
HINDUSTAN OIL EXPLORATION COMPANY LTD. (HOEC),
INDIA
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 

 
 
 
 
 

Oil & Gas Industry Operations and Markets 

1 
 
 I. COMPANY PROFILE:

Hindustan Oil Exploration Company Ltd (HOEC) is engaged in Exploration and

Production (E&P) activities & was the first private company in India to enter
into the field of oil and gas exploration. It was incorporated in India in 1983
having its registered office at Vadodra, Gujarat and operating office in Chennai,
India. HOEC is an Indian, private company as stated in its annual report, and
is listed in Bombay stock exchange (BSE India) and National Stock Exchange
(NSE India). (Source: Company Website, BSE and NSE Annual Report)

Major Business and Area of operation:

The Company's activities relate to exploration and production of hydrocarbons

in India only. Its segments include Hydro carbon and Oil additives. Its products
include onshore and offshore crude oil and natural gas. Its oil and gas assets
consist of operated and non-operated acreages in Assam-Arakan, Cauvery,
Cambay basins, Rajasthan and Pranhita-Godavari basins in India. It has AAP-
ON-94/1, which is a pre-new exploration licensing policy (NELP) block located
in Assam Arakan Basin. Its Cauvery project has over four development wells,
and an offshore platform and pipeline. Cauvery project has a processing plant
on over 210 acres of land. The Cambay project's North Balol block includes
approximately 10 wells. The Asjol block has over 10 wells. The CB-ON-7 block
has approximately 10 wells. The CB-OS/1 block is located in inter tidal
transition zone. (Source: https://in.reuters.com/finance/stocks/company‐
profile/HOEX.BO)

Current Top Priority:

B-80 is a discovered small field in the western offshore of India. The field was
awarded in the DSF Round – I to the Joint Venture between HOEC and Adhboot
Estates Private Limited, with HOEC as the operator. This field would be HOEC’s
first foray into the prestigious Mumbai offshore basin. The project involves
drilling two new wells, processing the oil/gas through a Mobile Offshore
Processing Unit (MOPU), and transporting the processed oil/gas through sub-
sea pipelines to the landfall point. Sub-sea lines laid from the MOPU will be
connected to existing ONGC pipelines. The oil so produced is proposed to be
taken to the Uran Plant, and the natural gas produced is proposed to be taken
to the Hazira Plant.

Currently, HOEC is identifying and securing tangibles for drilling of the two well
program, and identifying suitable partners to execute the drilling campaign. A
jack-up rig has been identified and acquired, and will be converted into a
MOPU. Contracts for conversion of top-sides, geo-tech and pipeline route
surveys are in advanced stages of close-out. The project is on track for delivery
of “First Oil” by June 2020. (Source: Company Website)

2 
 
II. COMPANY PERFORMANCE:
Comparison with Other Indian companies:
(Source: Moneycontrol.com)

Net Sales Net Profit

Company Name
(Rs. cr) (Rs. cr)

Reliance  335,978.00 30,903.00

ONGC  109,609.42 26,715.79
Petronet LNG  38,395.43 2,155.43
Oil India  13,734.96 2,590.14
Aban Offshore  262.89 -69.32
Deep Industries  259.12 59.64
HOEC  236.89 148.96
Jindal Drilling  207.39 34.12
Asian Oilfield  156.82 1.63
Selan Explore  93.33 51.51
Continent Petro  35.04 0.72

From the above parameters, it can be noted that company is fairly performing
when compared with other Indian major companies and also below table
represents company’s revenue in the last 5 years.

Company Revenue in last 5 years:

(Source: Simplywall.st)

Revenue 
(INR Millions)
3,000.00 2,705.39 2,794.65
2,651.41
2,459.02
2,500.00

2,000.00

1,500.00

1,000.00 790.99
487.13 487.18 595.29
500.00 254.92

0.00
12/31/2019 09/30/2019 06/30/2019 03/31/2019 03/31/2018 03/31/2017 03/31/2016 03/31/2015 03/31/2014

COMPANY PERFORMANCE HIGHLIGHTS – Q3 (FY2019-2020)

(Source: Company website Investor presentation)

3 
 
  Drilling of first well completed safely and successfully; Conversion of Jack-
up rig to MOPU for B80 on-track for sail out in March 2020; Floating Storage
& Offloading (FSO) tanker sourced for deployment in B-80
 Dirok production curtailed due to local agitations & partial shutdown of
major consumers like BVFCL
 Limited gas offtake at PY-1 due to prolonged major consumer shutdown -
MOU executed with a private consumer on fall back basis with premium
pricing
 Production Sharing Contracts (PSC) for PY-3, PY-1, Asjol extended upto
2030
 Cambay Basin; Palej R2 PSC execution further delayed; HOEC is the highest
bidder for four marginal onshore blocks of GSPC; Farm-in discussions with
JV partner (holding First Right of Refusal) initiated
 Kherem forest clearance approved; Petroleum Mining Lease (PML) awaited
 Kharsang PML executed by Government of Arunachal Pradesh
 HOEC submitted bid for Digboi Field under Production Enhancement
Contract (PEC) tender floated by Oil India

III. COMPANY MAJOR CHALLENGES AND WAY FORWARD:

(Source: Company website Investor presentation)

Company highlighted its major focus areas

 Deliver Development Projects

 B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 subject
to weather window ; ‘First Gas Sales” by Dec 2020
 Phase - II development of Dirok to increase production by Q1 FY 21-22

 Exploit Additional Potential

 Appraise North Dirok Potential within Dirok Development Area (Assam)
 Appraise potential in deeper prospects within Kharsang
 Development Area (Arunachal Pradesh)
 Appraisal & Development of upside potential in PY-1 (Cauvery Offshore)

 Explore to Discover New Resources

 Explore in Greater Dirok block adjacent to Dirok
 Explore R-2 area of CB-ON-7 on execution of PSC

 Ensure Portfolio Growth

 Participate in OALP & DSF bid rounds
 Evaluate inorganic opportunities
 Seek to increase participating interest in operated blocks
 Strengthen Subsidiary Companies to leverage opportunities in Oil Field
Services sector

4 
 
Bibliography:

1. Company Website: www.hoec.com; https://www.hoec.com/who-we-are/our-

story/; https://www.hoec.com/what-we-do/; Investor Presentations; Annual
Reports and Financial Results.

2. MoneyControl.com :
https://www.moneycontrol.com/stocks/marketinfo/netprofit/bse/oil-
exploration-and-production.html

3. https://www.moneycontrol.com/india/stockpricequote/oil-
drillingexploration/hindustanoilexplorationcompany/HOE01

4. https://www.moneycontrol.com/india/stockpricequote/oil-drilling-and-
exploration/hindustanoilexplorationcompany/charts/technical-chart-
analysis/HOE01

5. https://in.reuters.com/finance/stocks/company-profile/HOEX.BO

6. https://simplywall.st/stocks/in/energy/bse-500186/hindustan-oil-
exploration-shares#health

5