HINDUSTAN OIL EXPLORATION

Operates as an upstream oil and gas exploration and production company across multiple Indian blocks including B-80, B-15, PY-1, Dirok, Kharsang, Greater Dirok, Umatara and Cambay. Revenue comes from selling crude oil (from the B-80 block, currently sold to third-party buyers at Brent-linked pricing after a sale to HPCL was reversed), natural gas (Dirok and Kharsang fields), and condensate (Dirok block). Current production is approximately 1.5 kboe/day from these producing assets, backed by certified 3P reserves of 109 MMBOE, 2P reserves of 60 MMBOE and 1P reserves of 40 MMBOE. The company is executing a multi-year growth plan with around 20 wells in the drilling pipeline across producing, development and exploration blocks, and is targeting production scale-up to 32 kboe/day by 2029. The Dirok gas block is currently constrained by pipeline evacuation at 0.3-0.4 MMSCMD versus 1.1-1.2 MMSCMD potential, pending a 55 km replacement pipeline. Cost structure is dominated by other operating expenses at 122.1% of revenue and depreciation at 28.6%, with materials at 0%, reflecting the asset-heavy, non-manufacturing nature of upstream E&P.