Hindustan Oil Exploration Company shares surge most in six months, here is why

Shares of Hindustan Oil Exploration Company (HOEC), the Vadodara-based oil exploration and production company, rose as much as 8.14%, its biggest single day move since March 4, to hit an intraday high of ₹175 after the company informed exchanges that Government of India approved the award of contract area under the Discovered Small Field (DSF) Bid Round-IV to the company.

Hindustan Oil Exploration Company said that the award was communicated by the Directorate General of Hydrocarbons (DGH), Ministry of Petroleum & Natural Gas, Government of India, vide its letter dated 31 August 2026.

The Vadodara-based company added that the award id subject to execution of the Revenue Sharing Contract (RSC) between the President of India and HOEC.

"As communicated by DGH, the bid work programme, commercial terms, area, map and coordinates forming part of HOEC’s bid will be incorporated in the final RSC. The date and modalities for execution of the RSC will be communicated separately," the company said.

HOEC added that the awarded contract area is in the Mumbai Offshore basin and comprises multiple discovered field areas - C-23-9, C-39-14, BH-68, WO-5-11 and B-174-1, together with their respective geographical boundaries and existing well locations.

"The award further strengthens HOEC’s presence in the Western Offshore, where the Company already has an established operating presence in B80 field and are planning the development of B15 field which was awarded to it in 2025 by the Government of India," HOEC said.

The company said that it intends to evaluate the discovered hydrocarbons within the awarded area with a focus on accelerated and capital-efficient development, including opportunities for integration, infrastructure sharing and operating synergies with its existing and emerging Western Offshore portfolio.

As of 2:32 pm, HOEC shares traded 3.72% higher at ₹168, outperforming the NIFTY50 index which was down 3.7%.