Mumbai, Sept. 4 -- Hindustan Oil Exploration Company (HOEC) saw its share price rise five per cent in Tuesday's intraday session after the company secured a contract area in Mumbai from the Government of India to assess discovered hydrocarbons and to bolster its western offshore portfolio. The award was notified to the company, prompting investor interest and positive trading during the session. The move follows broader efforts by the company to consolidate its offshore operations and pursue development opportunities.
Under the scope of work, HOEC will evaluate the discovered hydrocarbons in the Mumbai area and examine various development options, including infrastructure sharing and operating synergies with its existing and emerging offshore assets. The contract area sits in the Mumbai offshore basin and comprises multiple discovered field areas with defined geographical boundaries and existing well locations. Details on the area and the wells are to be reflected in the company's bid documentation to the final revenue sharing contract.
The company indicated that the award strengthens its presence in the Western Offshore, where it already maintains an operating presence in the B80 field and is planning development of the B15 field that was awarded in 2025. The project remains subject to execution of a revenue sharing contract between the President of India and HOEC, and the bid work programme and commercial terms will be set out as part of the final submission. The company said the date and modalities for the contract will be communicated separately through regulatory filings.
HOEC received approval for the Mumbai contract areas from the Government of India through the Directorate General of Hydrocarbons (DGH), Ministry of Petroleum & Natural Gas, in a letter dated 31 August 2026. The company noted the contractual approval in its exchange filing and indicated that further operational and commercial details will follow as the bidding process progresses. Over the past one month the stock has delivered a return of more than five per cent and over the past six months the share price has climbed more than 28 per cent.
Published by HT Digital Content Services with permission from Construction World.