HOEC expects windfall from drop in oil field service costs

As it proceeds to bring to production an oil field in the Western offshore region, Hindustan Oil Exploration Company (HOEC) finds an unexpected windfall in terms of a 20-30 per cent fall in the cost of oil field services.

In March 2017, a joint venture of HOEC and Adbhoot Estates (owned by the promoters of Aban Offshore Ltd) won the ‘B-80’ oil field when the government of India bid out ‘discovered small fields’, which India’s public sector oil major ONGC had discovered but found too small for its time and attention.

Today, HOEC announced that it completed drilling a second well in B-80. The results of the drilling “surpassed our expectations”. The company estimates that when brought to production,