Hindustan Oil Exploration Company Limited (HOEC) has announced a significant milestone with the award of a new contract area, MB/OSDSF/B15/2024, under the Special Discovered Small Fields (DSF) Bid Round 2024. This award was confirmed on April 15, 2025, and marks a strategic enhancement in HOEC’s exploration and production portfolio in the Mumbai Offshore region.

The newly awarded Block MB/OSDSF/B15/2024 spans a total of 332.4 square kilometres, located in shallow waters with an average depth of around 40 metres. This block is particularly valuable as it encapsulates two proven discoveries, named B-15A-1 and B-15-2, both of which show considerable potential for further development and exploration.

The B-15A-1 well has delivered an impressive test result of 1.66 million standard cubic feet per day (mmscfd) of natural gas and 1833 barrels of oil per day (bopd). Additionally, well B-15-2 has also shown promising results with 1151 barrels of oil and 0.91 mmscfd of gas from the Panna formation, showcasing the commercial viability of the resources in the block.

HOEC is the sole operator of this block, holding a 100% Participating Interest, giving the company full control over development and operational decisions. This complete ownership is a strategic move that aligns with HOEC’s goal of expanding its offshore capabilities and reinforces its position as a leading independent oil and gas exploration company in India.

This acquisition is not an isolated achievement. It complements the existing MB/OSDSF/B80/2016 block, also located in the Mumbai Offshore region, and increases HOEC's total offshore area to over 800 square kilometres. The synergies between the two blocks will enable operational efficiencies, especially in terms of logistics, exploration activities, and infrastructure usage.

HOEC’s Managing Director, Mr. Ramasamy Jeevanandam, commented on the award, reaffirming the company's commitment to responsible growth. He highlighted HOEC’s strategy to leverage its deep technical expertise in offshore exploration and development, focusing on optimizing current operations while planning for the drilling of new wells that could uncover more reserves. The aim is to unlock the full potential of this contract area, further enhancing shareholder value and supporting India’s energy security goals.

The company sees this award as a significant growth opportunity, especially in the context of its historical performance in Mumbai Offshore and other operational areas. HOEC’s approach of acquiring discovered but underdeveloped fields, and then applying technical innovation and operational efficiency, has proven successful in the past. With this new award, HOEC intends to continue its value-creation model.

The Special Discovered Small Fields Bid Round 2024, under which this block was awarded, is an initiative by the Government of India to fast-track development of smaller but commercially viable fields. By allocating these fields to agile players like HOEC, the government aims to increase domestic hydrocarbon production and reduce dependency on imports. HOEC’s award under this round is thus not only a company achievement but also a step forward for India’s broader energy strategy.

In terms of operational outlook, HOEC plans to begin preliminary development work immediately, including detailed subsurface studies, reprocessing of existing seismic data, and engineering designs for drilling and production facilities. The company is expected to prepare a field development plan (FDP) to be submitted to the Directorate General of Hydrocarbons (DGH) in the coming months. Once approved, drilling operations may commence as early as 2026, with the potential for early monetization of existing discoveries.

The award of Block MB/OSDSF/B15/2024 under the DSF 2024 round is also a strong signal to investors and industry stakeholders of HOEC’s agility and capability in securing valuable assets. It reinforces HOEC’s role as a key player in India's upstream oil and gas sector, and positions the company to capitalize on future exploration and production opportunities, both in India and potentially in international markets.

With this strategic expansion, HOEC strengthens its position as a meaningful independent oil company, continuing its journey of value generation through smart acquisitions, operational excellence, and a focus on sustainability.

In conclusion, the new offshore block award under DSF 2024 is a significant development not just for HOEC but also for the Indian energy landscape. The presence of proven oil and gas reserves, the potential for additional exploration, and the company’s track record in managing similar blocks all point to a positive trajectory for future production and shareholder returns. HOEC’s continued participation in government-led bid rounds, combined with its operational strength, marks it as a company to watch in the evolving energy sector.

This development has created a wave of optimism in the oil and gas industry, reinforcing confidence in HOEC's strategic direction, especially at a time when energy security and domestic resource development are high on the national agenda.

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