Banks have refused to finance term loans of Hindustan Oil Exploration Company (HOEC), it sought for development of its PY-I field in the Cambay Basin.
The company was under dollar facility agreement (DFA) with a consortium of banks to avail dollar denominated term loans which failed. The company had sought $100 million loan to part finance the development of its PY-1 field. It said it is making alternate arrangements for required funds.
In a statement to the Bombay Stock Exchange, HOEC said, “Under the said agreement, the banks had made partial disbursement of $12.84 million. Due to market conditions, the banks are not willing to disburse the balance amount as per the terms of the DFA and accordingly the company has decided to repay the outstanding amount and close the DFA.”
The company is in advanced stages of making alternate arrangements for the required funds, the statement added. The company officials were not available for a comment.
HOEC has participating interest in seven oil and gas fields in India (in Cambay basin, Cauvery basin and Assam Arakan basin), which are in varying stages of exploration and production and development.
HOEC has been awarded two oil and gas blocks under the new exploration and licensing policy (Nelp VII).
The company reported a net profit of Rs 10 crore during the third quarter against a loss of Rs 2.5 crore during the corresponding previous quarter. Its net sales were at Rs 11.74 crore and other income was up at Rs 11 crore.
Shares of the company closed at Rs57.25, up 8.74 per cent of the Bombay Stock Exchange.
