Hindustan Oil Becomes Operator of Block CY-OSN-97/1

Hindustan Oil Exploration Company reports that the Ministry of Petroleum & Natural Gas, Government of India has inter alia approved the transfer of 50% participating interest (PI) of M/s Mosbacher (India) LLC (MIL) to HOEC and transfer of operatorship from MIL to HOEC in CY-OSN-97/ under NELP-I, located in offshore Cauvery Basin.

With the aforesaid approval, the Company becomes the Operator of the said block with 80% PI (balance 20% with MIL) effective October 2003.