Last Updated : Wednesday, August 29, 2018 15:25:59

Hindustan Oil Exploration wins oil block in Assam

VADODARA (BARODA) | MUMBAI | RAJKOT – Vadodara (Gujarat) headquartered Hindustan Oil Exploration Company Ltd has emerged as a successful bidder for an oil block in India vide biddings tendered through an open acreage licensing policy (OALP), the company today said in a press statement submitted to the Indian bourses.

HOEC is excited to announce that it has emerged as the successful H-1 bidder for Block AA-ONHP-2017/19 under the Open Acreage Licensing Policy (OALP) Bid Round I, the statement claimed.

The Directorate General of Hydrocarbons (DGH) has published the list of the duly approved awardees for 55 blocks and the Revenue Sharing Contract is expected to be executed with HOEC on September 06, 2018 at New Delhi.

The company has won Dirok oil block in Assam in Tinsukia district.


P. Elango, Managing Director of HOEC, said,

“Securing this block near our producing field in Dirok puts HOEC in a very advantageous position with ready access to infrastructure and market. This is a significant addition to our portfolio of assets in North East Region, where we have emerged as the top producer of oil and gas in the private sector. I am confident that the Greater Dirok Area will be a major driver to grow both our production and profitability over a long period of time.”


ABOUT DIROK BLOCK

This Block AA-ONHP-2017/19 extends to an area of 79 sq. km. and is located adjacent to Dirok Field operated by HOEC.

Based on assessed prospectivity, this Dirok extension area was carved out by HOEC by filing first the Expression of Interest (EOI) as required under OALP bid process and later submitted a competitive work program.

Dirok and its extension Block AA-ONHP-2017/19, together forms one Greater Dirok Area that is part of a proven petroleum system with a package of prolific reservoirs such as Girujan, Tipam and Barail, and known to hold several leads and prospects.

Greater Dirok Area has the required infrastructure in the form of Gas Processing Plant and gas pipeline to market operated by HOEC and Digboi Refinery of IOC in its vicinity, making it easy to rapidly drill the exploratory wells and to quickly monetize on success.


WHAT IS OALP (OPEN ACERAGE LICENSING POLICY)?

Open Acerage Licensing Policy (OALP) will enable upstream companies to bid for any Oil and Gas block without waiting for the announcement of bidding, as currently under the NELP (New Exploration Licensing Policy) regime.

It is well acknowledged that there is a need for a faster vehicle of awarding blocks in order to bring more area under exploration.


HOW OALP BENEFITS?

Open Acreage Licensing Policy (OALP) is one such vehicle which is under consideration of the Government wherein blocks may be offered round the year to the interested companies.

The selection of the block would be left to the interested player as opposed to NELP where blocks are carved out by the Government.


WHY OALP?

To make India a favorable destination globally for Exploration of Crude Oil and Natural Gas, the Government had planned to move to the OALP regime and the first bidding results vide OALP are now out.

However, launch of OALP was directly dependent upon the availability of the data for both the awarded and un-awarded acreages.

Setting up of National Data Repository is one of the milestones achieved for Open Acreage Licensing Policy, according to the website of National Data Repository.


THE IMPACT

Announcement from the company of having emerged as a successful bidder for oil block in India, hit the Indian bourses few minutes prior to opening of the trading session on the Indian Stock Exchanges, resulting spike in the opening of the HOEC share price and the stock continued trading in GREEN Zone on positive counters.


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