HOEC 2P reserves reach 104.37 MMBOE after B-174 award

HOEC reported net 2P reserves of 104.37 million barrels of oil equivalent (MMBOE) after including B-15 and B-174, with B-174 contributing 21.78 MMBOE. The signed-reserves statement remains concentrated in B-80, which accounts for 35.53 MMBOE, or 53.6%, of the 66.25 MMBOE signed net 2P total.

What took HOEC’s 2P reserves above 100 MMBOE?

HOEC’s total net 2P reserves rose to 104.37 MMBOE when B-15 and B-174 were included alongside the signed-reserves statement. The presentation reports 66.25 MMBOE of net 2P reserves in the signed statement, 16.34 MMBOE at B-15 and 21.78 MMBOE at B-174. Net 1P reserves total 74.51 MMBOE with the two additional blocks, compared with 44.51 MMBOE in the signed statement.

B-174 is included on the basis of a Directorate General of Hydrocarbons estimate, according to the reserves table, rather than the reserve bases listed for signed assets. B-174 carries 16.87 MMBOE of net 1P reserves and 21.78 MMBOE of net 2P reserves. Its block page rounds reserves as of September 30, 2026 to 21 MMBOE and states that its revenue-sharing contract was executed on October 22, 2026.

B-15 is included at 100% HOEC interest and recorded no production in the period labelled Q2FY27. Its 16.34 MMBOE reserve figure excludes non-drilled prospects, as stated in the reserves table, while technical studies for its field development plan were under way. HOEC obtained B-15’s petroleum lease in March 2026 and said drilling was expected to commence in November.

How dependent are HOEC’s signed reserves on B-80?

HOEC’s signed 2P reserve base is most dependent on B-80, which holds 35.53 MMBOE, or 53.6%, of the 66.25 MMBOE signed-statement total. B-80 has 100% HOEC participating interest and 23.15 MMBOE of net 1P reserves under the GCA 2020 basis shown in the presentation. The next-largest signed asset, AAP-ON-94/1, also called Dirok, has 13.51 MMBOE, equal to 20.4%.

The signed-reserve mix then declines to PY-1 at 10.38 MMBOE, or 15.7%, Kharsang at 3.23 MMBOE, or 4.9%, and PY-3 at 3.15 MMBOE, or 4.8%. Cambay’s four fields contribute 0.44 MMBOE, or 0.7%. B-80 alone therefore exceeds the combined signed net 2P reserves of Dirok, PY-1, Kharsang, PY-3 and Cambay, which together total 30.71 MMBOE.

B-80’s block page reports 35.44 MMBOE of 2P reserves as of September 30, 2026, compared with 35.53 MMBOE in the signed-reserves table. The presentation does not explain the 0.09 MMBOE difference. It reports Q2FY27 B-80 production of 350 barrels of oil equivalent per day, while the detailed operating table reports average oil production of 153 barrels per day and gas output of 1.07 million standard cubic feet per day.

What does B-174 add to HOEC’s portfolio?

B-174 adds 21.78 MMBOE of net 2P reserves at a 100% HOEC participating interest and comprises six gas discoveries and two oil discoveries. The block is in the Mumbai High basin, about 50 kilometres to 150 kilometres from Mumbai City, and reported no Q2FY27 production. Its net 2P addition is larger than B-15’s 16.34 MMBOE and exceeds every individual signed asset other than B-80.

B-174 and B-15 together lift the reported net 2P total by 38.12 MMBOE from the 66.25 MMBOE signed statement to 104.37 MMBOE. B-174 supplies the larger share of that increase, at 21.78 MMBOE, versus 16.34 MMBOE from B-15. B-174 represents about one-fifth of the resulting 104.37 MMBOE total.

The presentation identifies different reserve bases across the portfolio. B-174 is shown on a Directorate General of Hydrocarbons estimate, B-80 on GCA 2020, Dirok on GCA 2024, and PY-1, Kharsang, PY-3 and Cambay on FDP/RFDP MCR bases. The total therefore combines reserves reported under these stated bases, while the October 22, 2026 contract execution is the disclosed milestone for B-174.

What development work could affect HOEC’s reserve delivery?

HOEC’s B-80 programme includes workovers on two existing subsea wells in Q3FY27 and drilling of three new development wells in Q4FY27, after a drilling-rig contract was awarded. The field development plan provides for five wells, of which two have been drilled and three remain in the pipeline. HOEC also plans offshore facility de-bottlenecking and lower diesel use for offshore equipment.

B-80 production declined between the two reported quarters: oil fell from 270 barrels per day in Q1FY27 to 153 barrels per day in Q2FY27, while gas fell from 1.82 million standard cubic feet per day to 1.07 million standard cubic feet per day. HOEC attributed reduced B-80 production to high water cut in one well and planned a post-monsoon workover. The company reported 132,275 barrels of stock held in Q2FY27 and anticipated selling the full redirected crude quantity by the end of 2026.

The crude was redirected after HOEC reversed a sale to Hindustan Petroleum Corporation Limited following concerns over organic chlorides in a cargo of about 55,000 metric tonnes supplied in August 2025. HOEC said sales revenue of about Rs 260 crore had been held up by the dispute, deferring investments in well-drilling plans. The presentation says the matter was on a path to resolution and that sales to third-party refiners and distributors were ongoing.

At PY-1, HOEC reports 10.38 MMBOE of signed net 2P reserves and a four-well field development plan, with two wells drilled and two planned for Q4FY27. Q2FY27 gas production was 0.2 million standard cubic feet per day, down from 0.3 million standard cubic feet per day in Q1FY27. HOEC planned a coiled-tubing intervention on three wells in January 2027, targeting 3 million to 4 million standard cubic feet per day before new-well drilling in Q2FY28.

Conclusion

HOEC’s reported reserve base moved above 100 MMBOE because B-174 adds 21.78 MMBOE and B-15 adds 16.34 MMBOE to a 66.25 MMBOE signed 2P reserve statement. The enlarged total adds offshore Mumbai High exposure, but B-80 remains the central signed-reserve asset at 35.53 MMBOE and 53.6% of the signed total.

The next disclosed milestones are B-80 workovers targeted in Q3FY27, followed by three development wells in Q4FY27, and B-15 drilling expected to commence in November. B-174 has six gas and two oil discoveries and an executed October 22, 2026 revenue-sharing contract, but the presentation does not disclose a development or production schedule for the block.