Hindustan Oil Exploration Company update on B-80 gas e-auction

Hindustan Oil Exploration Company announced that pursuant to the techno-commercial evaluation, e-auction to discover the gas price for sale of 0.3 mmscmd natural gas to be produced from B-80 was held on 08 March 2022 and Gujarat State Petroleum Corporation (GSPC) has emerged as the successful bidder.

The contract for offtake of gas on an immediate sale basis shall be entered with GSPC for a duration of 2 years and the monthly sales gas price in US$/mmbtu will be calculated at 22.2% of the previous month average Brent Crude Oil price in US$/barrel. A floor price of US$ 6/mmbtu is applicable, i.e., if in any month the calculated sales gas price is less than US$ 6/mmbtu then a price of US$ 6/mmbtu shall apply.

For example, if the average Brent Crude Oil price of previous month is US$ 80/barrel, the applicable current month sales gas price will be US$ 17.76/mmbtu. The Company is on track to commence commercial production of oil and gas from B-80 Block by end of March 2022.

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