Banks have refused to finance term loans of Hindustan Oil Exploration Company (HOEC), which it sought for development of its PY-I field in the Cambay basin.
The company was in a dollar facility agreement (DFA) with a consortium of banks to avail dollar denominated term loans but this failed.
The company had sought $100 million loan to part finance the development of its PY-1 field.
In a statement to BSE, HOEC said, “Under the said agreement, banks had made partial disbursement of $12.84 million.However, due to market conditions, the banks are not willing to disburse the balance amount as per the terms of the DFA. 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. HOEC officials were not available for comment.
The firm 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 licencing policy (Nelp VII).
The company reported a net profit of Rs 10 crore in the third quarter of the financial year as against a loss of Rs 2.5 crore in the corresponding previous quarter. Net sales were Rs 11.74 crore and other income was up at Rs 11 crore.
Shares of the company closed at Rs 57.25, up 8.74 per cent on the Bombay Stock Exchange.
