IOC to Acquire Stake in Two Fields from Hindustan Oil

IOC has decided to acquire a stake in HOEC's two oil and gas fields in offshore Tamil Nadu for approximately $112 million. IOC has also decided to acquire 50 per cent equity in development block PY-1 for a consideration of $104.15 million, of which $12.54 million would amount to a premium. In addition, $8.44 million has been estimated as the past cost, $5 million as the carrying cost and $86.61 million as the development cost. For 40 per cent in another exploration block CY-OSN-97/1, IOC will pay $7.81million, including a premium of $4,00,000 and $1.08 million carrying cost.

Production from the PY3 block has increased substantially. The PY-3 (Cauvery Offshore) Consortium has drilled and activated well PD-3-S replacement well for PD-3-RL. Initial oil rate has been observed to be around 3,000 barrels of oil per day. The company holds 21 per cent non-operating participating interest in the block.

Two blocks (Asjol, PY-3) under production, two blocks (PY-1& North Balol) have proven reserves, while two blocks (CB-ON-7 & CB-OS-1) have reported potential commercial discovery.

HOEC is reportedly in talks with BG Group for acquiring their 62.64 per cent stake in block CB-OS/1 located offshore Gujarat. At present, partners in the Block are BG Group as operator (62.64 per cent); Tata Petrodyne (10 per cent); ONCG (10 per cent) and HOEC (17.36 per cent).