Shares of Hindustan Oil Exploration Company Ltd (HOEC) slumped over 5% to Rs 152.99 in early trade on Tuesday, October 28, after Hindustan Petroleum Corporation Limited (HPCL) reported significant operational issues linked to crude oil supplied by HOEC from its B-80 Mumbai Offshore oilfield.
According to HPCL’s disclosure to the exchanges, the crude supplied contained exceptionally high salt and chloride levels, well above the specified limits in the Crude Offtake Sales Agreement. This has caused corrosion in downstream units, suboptimal output, and reduced production at HPCL’s Mumbai Refinery.
HPCL has initiated formal communication with HOEC regarding the matter and is considering claims for damages as per the contractual terms. The refiner has also implemented remedial measures to stabilize operations.
The incident stems from 54.6 MT of crude procured in August 2025 through an auction process. However, when part of this consignment was processed in October, it led to multiple refinery-level challenges, impacting efficiency and output quality.
While HPCL has not yet disclosed the financial impact, the issue highlights potential reputational and operational risks for HOEC, especially given its reliance on production from the B-80 offshore field.
As of 9:38 am, HOEC shares were down 5.60% on the NSE, with an intraday low of Rs 149.16, making it one of the top losers in the early session.
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