Hindustan Oil Exploration Company Ltd. (HOEC) has laid out a multi-year growth plan targeting net production of nearly 32,000 barrels of oil equivalent per day (BOEPD) by 2029, compared with around 1,500 BOEPD currently.
The roadmap was outlined as part of the company’s FY26 earnings presentation.
HOEC, which has a market capitalization of about ₹2,219 crore, reported consolidated revenue of ₹301.3 crore and net profit of ₹62.8 crore for FY26.
Production target for next four years
The company expects production to rise in phases:
- FY26: Around 1,500 BOEPD
- FY27: 11,000 BOEPD
- FY28: 22,500 BOEPD
- FY29: Nearly 32,000 BOEPD
That implies output growth of more than 21 times over the period.
Reserve base
As of March 2026, HOEC reported:
- 1P reserves: 40.6 MMBOE
- 2P reserves: 62.3 MMBOE
- 3P resources: More than 103 MMBOE
The company’s largest producing asset is the B-80 offshore field, which holds reserves of 35.53 MMBOE.
B-80 development plans
HOEC now owns a 100 percent stake in the Mumbai offshore field.
Plans for FY27 include:
- Workovers of existing wells
- Drilling of three new wells
- Capital expenditure of about $30.5 million
The field currently produces around 1,103 BOEPD.
B-15 block to be developed
The recently acquired B-15 block contains estimated reserves of 16 MMBOE.
Management said:
- Technical studies are underway.
- Drilling is expected to begin in FY28.
- Production could eventually reach around 5,000 BOPD.
Kharsang field output doubles
In the North-East, HOEC completed a nine-well campaign at the Kharsang field during FY26.
Oil production increased from around:
- 325 BOPD
- To 726 BOPD
Three wells also encountered gas flows ranging from:
- 3.4 MMSCFD
- To 8.6 MMSCFD
The company plans to drill another nine wells in FY27.
Dirok gas field constrained
The Dirok field, which contains reserves exceeding 226 BCF, is operating below capacity because of limited gas evacuation infrastructure.
According to management:
- Production is running at roughly one-third of potential.
- The field’s tenure has been extended until 2035.
- Discussions on connecting to the national gas grid are continuing.
HPCL dispute delays monetisation
HOEC said a dispute with HPCL over crude supplied from the B-80 field has resulted in around ₹260 crore of sales revenue remaining blocked.
The company said the matter is being addressed through:
- Conciliation efforts
- Alternate crude sales arrangements
Management indicated that the delay has affected some investment and drilling plans.
FY26 financial performance
Compared with FY25:
- Revenue declined 34.4 percent to ₹301.3 crore.
- EBITDA fell 50 percent to ₹124.5 crore.
- Net profit dropped 57.4 percent to ₹62.8 crore.
The company’s gearing ratio stood at 0.04, with long-term debt of about ₹20 crore.
About the company
Founded in 1983, HOEC is India’s first private-sector oil and gas exploration company.
It operates onshore and offshore assets across:
- Assam
- Arunachal Pradesh
- Gujarat
- Maharashtra
- Tamil Nadu
TL;DR:
HOEC has outlined plans to increase production to nearly 32,000 BOEPD by 2029 from around 1,500 BOEPD currently. The expansion will be driven by developments at the B-80, B-15, Kharsang and Dirok fields.
AI summary:
- HOEC targets production of nearly 32,000 BOEPD by FY29.
- The B-80 field remains its largest asset with reserves of 35.53 MMBOE.
- The B-15 block could eventually produce around 5,000 BOPD.
- Kharsang oil output more than doubled during FY26.
- Around ₹260 crore of revenue remains tied up in an HPCL dispute.
