Hindustan Oil reports operational progress, increased gas sales, and Q2 financial results

Hindustan Oil Exploration Company Limited (HOEC) has released its Q2 FY26 earnings call transcript, detailing operational updates and financial performance for the quarter ended November 21, 2025. HOEC secured environmental clearance in February 2025 for drilling 40 development wells and three exploration wells in the Kharsang Block, with five of the initial nine development wells already in production. Dirok gas sales for the current quarter stood at 14 million standard cubic feet per day, with the Northeast Gas Grid expected to be operational by FY26 to increase sales volume and meet rising demand.

Financially, HOEC reported standalone revenue of INR 321.51 crores for the quarter, largely driven by crude oil sales from the B-80 field, which contributed INR 281.72 crores. The company is actively discussing with HPCL to amicably resolve a crude oil contamination issue, aiming to realize sales revenue of approximately INR 259 crores. Consolidated EBITDA for the quarter was INR 25.15 crores, with consolidated profit after tax at INR 2.83 crores.

The company is committed to drilling 18 shallow wells and three deep wells in Kharsang, four wells in Dirok, and additional wells in other onshore and offshore blocks. HOEC has secured INR 250 crores in debt capital to fund capital expenditure and aims to achieve a net production level of at least 6,000 barrels of oil equivalent per day by FY27.