Hindustan Oil Exploration Company Confirms Focus on Existing PY-1 Field for Additional Development Drilling

Hindustan Oil Exploration Company Confirms Focus on Existing PY-1 Field for Additional Development Drilling​

Hindustan Oil Exploration Company Limited (HOEC) has provided clarification regarding media reports concerning proposed drilling activities in the existing PY-1 Offshore Field within the Cauvery Basin. The company stated that the proposal involves only additional development wells within the boundaries of the established PY-1 block and not a new exploration area.

The PY-1 field is an existing and producing offshore gas asset, operated by HOEC since April 2006. The facility includes existing offshore wells, an unmanned SUN wellhead platform, and a subsea pipeline approximately 56 to 57 km long that connects the offshore facilities to the company's onshore gas processing terminal located in Tamil Nadu.

The present proposal is centered on drilling four additional development wells within the confines of the existing PY-1 Offshore Block. These proposed wells are intended for the development of the current hydrocarbon reservoir and have been identified through geological, geophysical, reservoir-engineering, and seismic studies conducted by HOEC's technical teams. The wells will be drilled to subsurface reservoir targets approximately 3 to 4 km below the seabed, adhering to established offshore drilling technologies and safety standards.

The primary objective of undertaking these additional wells is to restore production levels from the field toward the amounts originally sanctioned following natural reservoir depletion. This initiative aims to bring the PY-1 Field back to its initial sanctioned production capacity.

Operational Efficiency and Infrastructure Use​

A key feature highlighted by HOEC regarding the proposed development is that it is designed to utilize existing infrastructure. The additional wells will be connected to the current unmanned SUN offshore platform and the established subsea pipeline, as well as the onshore gas processing facilities. This design ensures that the development utilizes substantial existing capacity and does not require the construction of a new offshore production platform or a new subsea export pipeline.

The company noted that the SUN offshore platform was constructed with nine well slots, and the proposed wells are intended to use the available capacity within the existing structure.

Regulatory Status and Environmental Compliance​

HOEC detailed the progression of the development program, noting it is being advanced in alignment with relevant approvals from the Directorate General of Hydrocarbons (DGH) and the Ministry of Petroleum and Natural Gas (MoPNG), Government of India.

The company has actively pursued necessary environmental and Coastal Regulation Zone (CRZ) clearances. The Ministry of Environment, Forest and Climate Change granted the Terms of Reference for the project on August 21, 2025. Subsequently, HOEC completed the detailed Environmental Impact Assessment (EIA) and marine studies, submitting the report to the Ministry on June 1, 2026, for consideration. The company is currently responding to queries from the competent authorities through the prescribed regulatory process.

The PY-1 development has a history of environmental oversight; previous stages of field development, including offshore drilling and the subsea pipeline installation, had required prior approvals.

Investment and Commitment to Tamil Nadu​

HOEC reported cumulative investments amounting to approximately ₹3,400 crore in the PY-1 Field and associated infrastructure. The company expressed commitment to responsible future investment while maintaining full compliance with statutory requirements.

Emphasizing its long operating presence in Tamil Nadu, HOEC noted that approximately 80% of employees and contractors engaged in PY-1 operations are sourced from the local community. Furthermore, the company has conducted various community development and welfare initiatives supporting local infrastructure.

HOEC reiterated its commitment to environmental protection, assuring that any drilling activities will only commence after obtaining all requisite statutory clearances and will be executed in strict adherence to the conditions stipulated by the competent authorities, along with proper marine protection and safety measures. The management emphasized that media reports do not currently have a material impact on company operations.

HINDOILEXP Stock Price Movement​

Hindustan Oil Exploration Company Limited shares slipped today, settling at ₹153.71 after shedding 1.48% in trading. The equity traded within a tight range, hitting a daily low of ₹153.51 on a total volume of 428,461 shares.