Hindustan Oil Exploration Company Limited (HOEC) was incorporated in 1983 under the visionary leadership of Late Shri. H.T. Parekh, who foresaw the need for private participation in the Indian Oil & Gas sector. It is India's first private E&P company and has established itself as a significant player in the country's energy sector over its four-decade journey.
The company is engaged in the exploration, development, and production of crude oil and natural gas in India, both onshore and offshore. Its assets are geographically spread across Tamil Nadu, Maharashtra, Gujarat, Assam, and Arunachal Pradesh.
HOEC boasts an India-focused asset portfolio comprising 10 Oil & Gas blocks of discovered resources and 1 exploratory block. It maintains a presence in 4 out of 7 producing basins in India, engaged in the full spectrum of crude oil and natural gas operations.
The Company's key operations include Dirok, Kharsang, Umatara, Greater Dirok, B-80, PY-1, Asjol, North Balol, and Palej. Notably:
- The Dirok project produces approximately 50 billion cubic feet (BCF) of natural gas and 1 million barrels (MMBBL) of condensate.
- The PY-1 field is situated in the offshore part of the Cauvery Basin.
- The three marginal fields at Cambay – Asjol, North Balol, and CB-ON-7 – collectively produce approximately 150 barrels of oil equivalent per day (boepd).
HOEC announced the award of a contract area MB/OSDSF/B15/2024 under the Special Discovered Small Fields Bid Round 2024 on April 15, 2025. This block spans 332.4 Sq. Kms in the Mumbai Offshore region at a water depth of about 40m and encapsulates two discoveries, B-15A-1 and B-15-2, with potential for further exploration.
- Well B-15A-1 tested approximately 1.66 million standard cubic feet per day (mmscfd) of gas and 1833 barrels of oil per day (bopd).
- Well B-15-2 tested around 1151 barrels of oil and 0.91 mmscfd of gas from the Panna formation.
The company initially plans to drill nine development wells in this Block. Current drilling activities include Well KSG-71, which is under testing with initial oil production of about 250 barrels per day, and the recently spudded second well, KSG-72, marking a significant resumption of drilling after a 12-year interval in this area.
Hindustan Oil Exploration Company Ltd (HINDOILEXP) has a market capitalization of ₹2,411.99 Crore as of May 28, 2025.
The 52-week high for the stock is ₹293.55, and the 52-week low is ₹147.84.
Key financial metrics demonstrate strong performance:
- Operating Revenue: Rs. 667.09 Cr (trailing 12-month basis)
- Annual Revenue Growth: 35% (outstanding)
- Pre-tax Margin: 33% (great)
- Return on Equity (ROE): 19% (exceptional)
- Debt to Equity: 7% (reasonable, signaling a healthy balance sheet)
- Debt Status: Company has reduced debt and is almost debt-free.
- Total Asset Value: ₹ 1,916 Cr (as on December 31, 2024)
- P/E (Price-to-Earnings) Ratio: 10.65
- P/B (Price-to-Book) Ratio: 2.05
In Q3 FY2024-25, HOEC showed resilience despite a cautious market and challenges like rising operating costs and production constraints due to demand limitations. The company reported significant financial improvements.
Strategic initiatives include the successful bid for Block B-15 and plans to drill nine new wells, aiming to enhance operational capacity and capitalize on anticipated demand growth from the North-Eastern Gas Grid. While gas prices have seen a decline, the company focuses on flexible pricing strategies and optimizing existing infrastructure. With zero net debt and a robust capital expenditure plan, HOEC is well-positioned for future growth, emphasizing sustainable practices and effective cost management amidst market volatility.
The Company's subsidiaries include:
- Hindage Oilfield Services Limited
- Geopetrol International Inc.
- Geopetrol Mauritius Limited
- GeoEnpro Petroleum Limited (a wholly owned step-down subsidiary of HOEC, which operates a block with 10% participating interest).
Hindustan Oil Exploration Company Ltd (HINDOILEXP) operates in the Energy sector, specifically the Oil & Gas - Exploration & Production sub-sector. The company is listed on both NSE and BSE with the symbol HINDOILEXP and BSE code 500186. Incorporated in 1983 and based in Chennai, India, its headquarters are in Vadodara, Gujarat. Ramasamy Jeevanandam serves as the Managing Director.
HOEC represents a compelling investment opportunity in India's oil and gas sector, combining its pioneering experience as the country's first private E&P company with a diversified portfolio of assets across multiple producing basins. The company's strong financial position, strategic acquisitions, and ongoing expansion initiatives position it well for future growth in India's evolving energy landscape.
