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Shares of Hindustan Oil Exploration (HOEL) tanked 16 per cent to Rs 183.75 on the BSE in otherwise firm market on Friday, following the company’s update on the B-80 project. The company said there has been a delay in the commencement of production from the field due to operational issues.
At 12:09 pm; the stock was down 10 per cent at Rs 198, as compared to a 0.36 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over four-fold with a combined 5.6 million equity shares having changed hands on the NSE and BSE. The stock had hit a 52-week high of Rs 245.15 on January 18, 2022.
HOEL said the pre-commissioning and safety checks at KGB-Offshore Installation (MOPU) and FSO Prem Pride (FSO) are complete and the system is ready to receive the first hydrocarbons. “The well opening sequence was followed to bring the first well safely on production, however we have encountered operational issues and troubleshooting is currently ongoing,” HOEL said in an exchange filing.
The delay witnessed in the commencement of production from the field being unanticipated, necessary corrective actions are being taken by them company, and the field will safely be brought on line for production as soon as the issues are rectified, it said.
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