HOEC finds oil in Mumbai offshore

11 May 2020

Hindustan Oil Exploration Company (HOEC) said that it has found oil reserves in a well it drilled in a block 150-km off the Mumbai coast, boosting output prospects from the acreage by 60% to 8,000 barrels of oil and oil equivalent gas per day. HOEC had previously found oil in the very first well it drilled on B-80 block which it had won in a Discovered Small Fields (DSF) bid round.

"We are delighted to report that in D-1 well, production test was carried out over a period of 3 days. D-1 produced significantly more oil during the flow test, compared to first well D-2 test results announced by us on February 24, 2020," the firm said in a statement.

In a telephonic interview with PTI, its CEO P Elango said the company was earlier expecting an output of 5,000 barrels of oil and oil equivalent gas per day which has after the second well been upgraded to 8,000 boepd.

The output includes 5,000 barrels of oil per day and 20 million cubic feet per day of natural gas.

"We have reduced operating cost to help breakeven even during the current low oil price scenario," he said adding operating cost which was about $50,000 per day has been cut by 20%.

The company is planning to begin output from the block by December. "We will begin work to hook up production pipeline to an ONGC facility post-monsoon in October and hope to complete work by December," he said.

HOEC has so far invested USD 45M in the block that sits in water depths of 80 meters.