Hindustan Oil Exploration Share Drops Almost 6% Following Clarification of Crude Quality Problem

Mumbai, October 28, 2025 – Hindustan Oil Exploration Company Ltd shares (NSE: HINDOILEXP) plummeted more than 5% in Tuesday’s trading session. This drop came after company’s clarification regarding crude quality issues raised by Hindustan Petroleum Corporation Ltd (HPCL).

Company Clarification on Crude Quality Concerns

In an exchange filing, Hindustan Oil Exploration mentioned that it had signed a crude oil sales agreement with HPCL on September 3, 2025, and executed the offtake and custody transfer on September 25, 2025, for around 54.6 TMT of crude oil. The company informed that the crude quality was assured through an independent laboratory assay report dated July 12, 2025.

But HPCL subsequently reported higher-than-anticipated chloride levels in samples drawn during offloading from the B-80 offshore field. HOEC explained the issue under investigation and reiterated that, as per the agreement conditions, no loss, damage, or claim can be traced to the company. It also pointed out that it had already supplied large amounts of crude oil from the same field without any quality problem.

Market Reaction

Investor sentiment continued to be circumspect after the clarification, with HOEC shares falling close to 5.87% to ₹152.55 as of 2:07 pm IST. The stock has been under selling pressure in recent days, remaining close to its 52-week low of ₹147.84.

Hindustan Oil Exploration Company Ltd was incorporated in 1996 and listed from 2003. It is involved in the exploration, development, and production of crude oil and natural gas. The firm has major assets including the B-80 offshore field and is a significant contributor to India’s upstream hydrocarbon production.

REF: https://nsearchives.nseindia.com/corporate/HINDOILEXPCS_28102025090019_SEIntimation_ClarificationB80_28102025_signed.pdf

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