HINDOILEXP

Hindustan Oil Exploration Company Limited ‘Lakshmi Chambers’, 192, St. Mary’s Road, Alwarpet, Chennai - 600 018. INDIA. : 91 (044) 66229000 ● Fax: 91 (044) 66229011 / 66229012 E-mail: contact@hoec.com ● Website: www.hoec.com CIN: L11100GJ1996PLC029880 May 14, 2019 By Online The Listing Department The Corporate Relationship Department The National Stock Exchange of India Ltd., BSE Limited, “EXCHANGE PLAZA”, 1st Floor, P. Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, MUMBAI – 400 001 Bandra (East), MUMBAI – 400 051 Stock Code: 500186 Stock Code: HINDOILEXP Dear Sirs, Sub: Investor Presentation In connection with the Earnings Call scheduled on Wednesday, May 15, 2019, please find attached the Investor Presentation. We request you to kindly take the same on records and disseminate to public. Yours Sincerely, For Hindustan Oil Exploration Company Limited G Josephin Daisy Company Secretary Encl.: a/a Registered Office: ‘HOEC HOUSE’, Tandalja Road, Off Old Padra Road, Vadodara - 390 020. INDIA. : 91 (0265) 2330766, 2333565 E-mail: contact@hoec.com ● Website: www.hoec.com INVESTOR PRESENTATION 15TH MAY 2019 TRANSFORMING THROUGH TALENT AND TECHNOLOGY 1 | HI NDUSTAN OI L EXPLORATI ON COMPANY LI MI TED SAFE HARBOUR Investor presentation Q4 2018-19 This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation topurchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means ofastatutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward- looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted bythe Company and the Company is not responsible for such third party statements and projections. 01 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED CONTENTS Investor presentation Q4 2018-19 1 FY 18-19 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook 02 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED FINANCIAL YEAR 2018-19 PERFORMANCE HIGHLIGHTS Investor presentation Q4 2018-19 Gross Production Revenue ― Hollong Modular Gas Processing Plant (HMGPP) completed (BOEPD) (in Cr.) one year of LTI and downtime free operations. Consolidated FY 19 – 9171 FY 19 – 265 production ramp-up from this key asset. Production is now consistently at 35 mmscfd of Gas and 800 bbld of FY18 -2429 FY18 -48 condensate per day Gross Working Cash & Cash ― Successfully completed 2 well drilling campaign in PY-1 Capital Equivalent thereby increasing production to 10 mmscfd (in Cr.) (in Cr.) FY 19 – 245 ― Kharsang field production for FY19 is 662 bopd effective 1st FY 19 – 147 April 2018 FY18 -201 FY18 -142 ― Substantial progress achieved in the delivery of our Operating Cash PAT keystone project (B-80) and project is now on schedule for flow (in Cr.) ‘First Oil’ by June 2020-21 (in Cr.) FY 19 – 190* FY 19 – 157 ― Continued to grow our unique portfolio of discovered resources through inorganic acquisitions and participation FY18 -40 FY18 -38 in various bid rounds. Added Kharsang, Umatara and AA- ONHP-2017/19 in the North-east region * -Excluding working capital changes 03 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED STRONG FOUNDATION FOR GROWTH Investor presentation Q4 2018-19 Marching ahead consistently on the growth path Maintain Strong Financial Foundation Deliver Consistent Production • Continue to maintain debt free balance sheet and low cost • Average Gross Operated Production; FY19 - 9171 boepd | FY18 operating model - 2429 • Gross working capital ₹ 245 Crores includes ₹ 147 Crores cash • Average Gross Production from PY-1; FY19 - 1445 boepd | FY18 and cash equivalent - 475 • Revenue from operations increased to ₹ 265 Crores from ₹ 48 • Average Gross Production from Dirok; FY19 - 6894 boepd | Crores in FY 17-18 FY18 - 1778 Ensure Focus on Growth • Acquired Geopetrol International Inc., thereby gaining 30% PI (direct & indirect) in the Kharsang Oil field • Awarded block AA-ONHP-2017/19 (Adjacent to Dirok field) in OALP Bid round & Umatara (in partnership with IOC) in DSF-Bid round II • B-80 development on track; Endeavor for ‘First Oil’ by June 2020 • Revised field development plan for Dirok, PY-1 and Kharsang submitted • Change of operatorship in PY-3 revives opportunities in restarting this prolific field in synergy with PY-1 field facilities 04 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED FOCUS AREAS & PRIORITIES Investor presentation Q4 2018-19 • B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 Deliver • Phase - II development of Dirok to increase production by Q1 21-22 Development • Work with new operator ONGC to revive PY-3 Projects • Appraisal & Development of upside potential in PY-1 (Cauvery Offshore) Exploit • Appraise North Dirok Potential within DirokDevelopment Area Additional (Assam) Potential • Appraise potential in deeper prospects within Kharsang Development Area (Arunachal Pradesh) Focus Areas Explore to • Exploration in block AA-ONHP-2017/19 adjacent to Dirok Discover new • Explore R-2 area of CB-ON-7 on execution of PSC Resources Ensure • Participate in OALP & DSF bid rounds Portfolio • Evaluate inorganic opportunities • Seek to increase participating interest in operated blocks Growth 05 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED B-80 DEVELOPMENT PLAN Investor presentation Q4 2018-19 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Gas/Oil through existing ONGC 3 lines 5000 bopd Target: & 15 mmscfd in Phase - I 50% PI June 2020 06 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED B-80 UPDATES Investor presentation Q4 2018-19 Project On-track for delivery of ‘First Oil’ by June 2020 First Oil Target June 2020 STOIIP/ GIIP 40 MMBBls/ 44 BCF Production Rate 5000 bopd of Oil & 15 mmscfdof gas from 2 wells in Phase - I Planned activities 2 new development wells. Processing through MOPU (Mobile Offshore Processing unit) and evacuation through existing pipelines of ONGC Current Activities & Updates: - Jack-up Rig (KGB) procured for conversion to MOPU - Contract for Oil & Gas processing plant (Topsides) on MOPU awarded to EXPRO, UK - ZENTECH, USA appointed as Engineering and Project Management consultant - Discussions with suitable vendors are in progress for marine side works on MOPU and for drilling and subsea completion Jack-Up Rig Purchased 07 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED DIROK PHASE-II DEVELOPMENT Investor presentation Q4 2018-19 Project on-track for delivery of additional gas by Q1 FY21-22 3. 1. 2. DELIVERY DRILLING PROCESSING 35 KM pipeline from HMGPP 4 development wells HMGPP to marketing hub of Duliajan & Appraisal capacity expansion - Will aid in obtaining premium - Appraisal well in North Dirok - Increases capacity from price for additional gas - Increases production from 35 35 to 55 mmscfd - Physical route survey completed to 55 mmscfd - Tendering in process - Regulatory clearance in process 08 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED KHARSANG UPDATES & DEVELOPMENT PLAN Investor presentation Q4 2018-19 Plan for 18 wells in Phase - I FDP approved with the following parameters: Reservoir Upper Girujan OIIP/ GIIP 223 MMBBls/ 184 BCF Production Rate Production to be increased to 1800 bopd from ~650 bopd Planned Activities 18 wells; Includes appraisal of deeper prospects Current Activities & Updates - RFDP & PSC extension reviewed and recommended by Management Committee for approval by GoI - Forest Clearance is obtained. Mining Lease approval under process with the Govt. of Arunachal Pradesh - Phase - I completion target is Q2 FY 21-22* 09 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED * - Subject to JV & Regulatory approvals PY-3: CHANGE IN OPERATORSHIP Investor presentation Q4 2018-19 ― ONGC is assuming operatorship of PY-3 field under the PSC/JOA. Field will be operated under joint operatorship model with appropriate role for HOEC ― HOEC has 21% stake in PY-3. Operates PY-1 Gas field with an offshore platform and onshore processing facilities close to PY-3 field ― Integration of PY-1 and PY-3 facilities though a 6 Km offshore pipeline is feasible and most cost effective to revive production from PY-3 ― Application for revised FDP & PSC extension under review by DGH ― PY-3 field was shut-in on 31 July 2011 when it was producing 3000+ bopd without any sub-surface issues 10 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED CAMBAY BLOCKS Investor presentation Q4 2018-19 3 blocks with developed infrastructure with upside to be exploited E Asjol; (O); PI 50.0% D North Balol; (O); PI 25.0% C CB-ON-7; (O); PI 35.0% 3 blocks - Asjol, North Balol and CB-ON/7 R2 Area : CB-ON/7 ― Revised FDP submitted for Asjol & under preparation for ― Additional 97.15 sq.km of R2 area granted to JV North Balol ― Commitment to acquire 3D seismic and drilling ― Drilling campaign for cambay blocks are planned of 2 wells ― PSC expected to be executed at the earliest 11 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED VALUE PROPOSITION Investor presentation Q4 2018-19 Quality Asset Portfolio Strong Organisation Focused Strategy Uniquely placed to combine a quality asset portfolio with a strong organisation through a focused strategy to deliver better returns 12 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED QUALITY ASSET PORTFOLIO Investor presentation Q4 2018-19 • Portfolio of discovered resources – Ten blocks A AAP-ON-94/1; (O); PI 26.882% with discoveries producing / ready to be B AA/ONDSF/KHEREM/2016; (O); PI 40.0% developed • Diverse geographical footprint - Presence in 4 K out of 7 producing basins in India • Balanced portfolio – Offshore – 3 blocks/Onshore - 8 blocks & Oil/Gas K Umatara: PI –50% F Kharsang; (O); PI 30.0%* Added 3 blocks in FY18-19 JF AA-ONHP-2017/19; (O); PI 100.0%* E Asjol; (O); PI 50.0% • Upside potential for exploration within D North Balol; (O); PI 25.0% portfolio with infrastructure for rapid C CB-ON-7; (O); PI 35.0% monetisation I MB/OSDSF/B-80/2016; (O); PI 50.0% • Operatorship in majority of blocks to drive value creation Offshore blocks – 2 on eastern offshore G PY-1; (O); PI 100% • One exploratory block in our focus area North and one in Mumbai high H PY-3; PI 21% East added to portfolio through OALP-I 13 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED FIRING UP THE GROWTH ENGINE Investor presentation Q4 2018-19 Gas (boe/d) Forecast GP ~ 21000 boepd Oil/ Cond. (bbl/d) GP ~ 15000 boepd GP –Gross Production NP –Net Production Boepd–Barrels of Oil Equivalent GP ~ 10000 boepd NP ~ 9000 GP - 9170 boepd boepd NP ~ 7500 boepd NP ~ 4500 boepd NP - 4107 boepd FY 17-18 FY 18 - 19 FY 19-20 FY 20-21 FY 21-22 DirokPhase –II Q1 FY21-22 B-80 ‘First Oil’ -June 2020 KharsangPhase –I Q2 FY21-22 13% 13% 32% 37% Gas – Oil Ratio 63% 68% 87% 87% ― Does not include the expected production from PY-3 & gas from Kharsang field 14 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED MARKET OUTLOOK Investor presentation Q4 2018-19 GoIPrice of Domestic Gas ($/mmbtu) Historic Brent price($/bbl) 6 5.05 120 4.66 5 100 3.82 3.69 4 3.36 80 3.06 3.06 2.89 60 3 2.5 2.48 40 2 20 1 0 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 - n - p -c - r - n - p -c - r - n - p -c - r - n - p -c - r - n - p -c - r u e e a u e e a u e e a u e e a u e e a J S D M J S D M J S D M J S D M J S D M ― Indian E&P industry opening up due to key policy changes and introduction of OALP / DSF bid rounds ― Multiple inorganic opportunities available in core operational areas ― Domestic Gas price from Apr 2019 to Sep 2019 increased to $3.69/mmbtu ( by 10% over H2 FY18-19) ― PY-1 gas is sold under long-term fixed price contract at $3.66/mmbtu on existing discoveries 15 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED BUSINESS OUTLOOK - SUMMARY Investor presentation Q4 2018-19 1 Unique value proposition - Quality asset portfolio with strong organisational capabilities 2 Company established on firm financial foundation with growing cash flow from operations 3 Management committed to growth through executing focused strategy 4 Robust pipeline of low-risk, short cash cycle projects planned/under-execution 5 Company well positioned to deliver industry leading growth and returns 16 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED STANDALONE STATEMENT OF PROFIT & LOSS Investor presentation Q4 2018-19 For the year (₹Crores) . Particulars 2018-19 2017-18 INCOME Revenue from operations 236.89 48.71 Other income 10.07 11.44 Total revenue 246.96 60.15 EXPENSES Expenses from producing oil and gas blocks 28.23 11.16 Royalty ,Cess and NCCD 19.69 1.89 Decrease / (Increase) in stock of crude oil and condensate 3.92 (4.55) Employee benefits expense 3.96 5.58 Finance costs -unwinding of discount on decommissioning liability 1.40 1.00 Depreciation, depletion and amortization 35.06 8.35 Other expenses 7.11 3.37 Total expenses 99.37 26.80 Profit before tax and exceptional Items 147.59 33.35 Exceptional Items –Income 2.30 4.49 Profit before tax 149.89 37.84 Net tax expenses –prior year tax adjustment 0.93 - Net profit for the period 148.96 37.84 Other comprehensive income (0.16) (0.16) Total comprehensive income 148.80 37.68 Earnings per equity share of ₹ 10 each -Basic ₹11.42 ₹2.90 -Diluted ₹11.32 ₹2.88 17 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED STANDALONE STATEMENT OF ASSET & LIABILITIES (AUDITED) Investor presentation Q4 2018-19 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Mar 31, 2019 March 31, 2018 Mar 31, 2019 March 31, 2018 Non-current assets Shareholders’ funds Property, Plant and Equipment Equity share capital 130.51 130.51 (i) Oil and gas assets 325.52 262.94 Other equity 391.83 243.02 (ii) Others 2.81 6.60 Total equity 522.34 373.53 Capital work-in-progress 2.13 5.62 Investment property 4.36 0.83 Intangible assets 10.27 9.83 Non-current liabilities Financial Assets Financial liabilities (i) Investments in subsidiary 59.46 0.50 (i) Trade payables 22.11 22.11 (ii) Site restoration deposit 58.98 55.13 (ii) Other financial liabilities 0.31 - (iii) Other bank balances - 0.05 Provisions 98.28 96.79 (iv) Other financial assets - 0.40 Other non-current liabilities 0.10 0.03 Other non current assets 0.08 - Total non-current assets 463.61 341.90 Total non-current liabilities 120.80 118.93 Current assets Inventories 22.71 28.27 Current liabilities Financial assets Financial liabilities (i) Investments 111.29 41.84 (i) Trade payables 10.76 17.89 (ii) Trade receivables 39.09 16.07 (ii) Other financial liabilities 27.76 22.24 (iii) Cash and bank balances 17.40 84.18 Provisions 0.10 0.18 (iv) Other bank balances 7.79 7.33 Other current liabilities 2.71 1.31 (v) Loan to subsidiary 12.11 - (vi) Other financial assets 5.22 5.46 Income tax assets 4.51 8.34 Total current liabilities 41.33 41.62 Other current assets 0.74 0.69 Total current assets 220.86 192.18 TOTAL 684.47 534.08 TOTAL 684.47 534.08 18 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED CONSOLIDATED STATEMENT OF PROFIT & LOSS Investor presentation Q4 2018-19 For the year (₹Crores) . Particulars 2018-19 2017-18 INCOME Revenue from operations 265.14 48.71 Other income 11.19 11.84 Total revenue 276.33 60.55 EXPENSES Expenses from producing oil and gas blocks 37.21 11.16 Royalty ,Cess and NCCD 20.84 1.89 Decrease / (Increase) in stock of crude oil and condensate 4.18 (4.55) Employee benefits expense 5.32 5.58 Finance costs -unwinding of discount on decommissioning liability 1.57 1.00 -Others 0.10 0.03 Depreciation, depletion and amortization 43.81 8.47 Other expenses 10.48 3.94 Total expenses 123.51 27.52 Profit before tax and exceptional Items 152.82 33.03 Share of profit from associate 1.42 - Exceptional Items –Income 2.62 4.49 Profit before tax 156.86 37.52 Net tax expenses –prior year tax adjustment 0.12 - Net profit for the period 156.74 37.52 Other comprehensive income (0.16) (0.16) Total comprehensive income 156.58 37.36 Earnings per equity share of ₹ 10 each -Basic ₹12.01 ₹2.88 -Diluted ₹11.91 ₹2.85 19 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED CONSOLIDATED STATEMENT OF ASSET & LIABILITIES (AUDITED) Investor presentation Q4 2018-19 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Mar 31, Mar 31, 2019 March 31, 2018 March 31, 2018 2019 Non-current assets Shareholders’ funds Property, Plant and Equipment Equity share capital 130.51 130.51 (i) Oil and gas assets 355.71 262.94 Other equity 409.73 252.70 (ii) Others 13.52 6.99 Total equity 540.24 383.21 Capital work-in-progress 26.18 5.62 Investment property 4.36 0.83 Non-current liabilities Intangible assets 10.27 9.83 Financial liabilities Financial Assets (i) Long term borrowings 0.18 0.25 (i) Investments in associate 17.22 - (ii) Trade payables 22.11 22.11 (ii) Site restoration deposit 61.60 55.13 (iii) Other financial liabilities 0.31 - (iii) Other bank balances - 0.05 Provisions 101.46 96.79 (iv) Other financial assets 0.06 0.40 Other non-current liabilities 0.10 0.03 Other non current assets 0.08 - Deferred tax liability 3.95 - Total non-current assets 489.00 341.79 Total non-current liabilities 128.11 119.18 Current assets Inventories 27.83 28.27 Current liabilities Financial assets Financial liabilities (i) Investments 119.74 50.65 (i) Short term borrowings 11.76 - (ii) Trade receivables 40.93 16.49 (ii) Trade payables 16.28 18.07 (iii) Cash and bank balances 27.64 84.31 (iv) Other financial liabilities 27.95 21.57 (iv) Other bank balances 7.79 7.33 Provisions 6.81 0.17 (V) Other financial assets 10.55 5.45 Other current liabilities 3.00 1.32 Income tax assets 9.68 8.45 Total current liabilities 65.80 41.13 Other current assets 0.99 0.78 Total current assets 245.15 201.73 TOTAL 734.15 543.52 TOTAL 734.15 543.52 20 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED GOI POLICY ON ROYALTY & CESS Investor presentation Q4 2018-19 Previously After GoI Policy on Royalty & Cess Royalty & Cess Royalty & Cess Paid 100% by Licensee and not cost To be shared by JV parties in ratio of Revenue recoverable Revenue their PI and cost recoverable as contract costs Contract Costs Contract Costs - - - Exploration - Exploration - Development - Development - Production - Production Cost Petroleum Cost Petroleum - Royalty & Cess To be shared by JV parties in ratio of To be shared by JV parties in ratio of their share of unrecovered cost their share of unrecovered cost = = Up to 100% of annual revenue is Up to 100% of annual revenue is allowed for cost recovery. allowed for cost recovery. Profit Petroleum Profit Petroleum Any amount left after cost recovery Any amount left after cost recovery becomes Profit Petroleum to be becomes Profit Petroleum to be shared with GoIbasis IM and JV shared with GoIbasis IM and JV parties in ratio of their PI parties in ratio of their PI Differential returns to Licensee and other JV Parties Returns get equalised facilitating additional investments Impacts Dirok and CB-ON-7 IM –Investment Multiple; PI –Participating Interest 21 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED INVESTMENT MULTIPLES Investor presentation Q4 2018-19 Block AAP-ON-94/1 PY-1* PY-3* N. Balol Asjol CB-ON-7 Kharsang* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% INR 481/MT 10% - INR 481/MT 20% INR 481/MT Cess Oil/Cond 20% INR 900/MT 20% 0 INR 900/MT 20% INR 900/MT Cost Recovery limit 80% 100% 100% 80% 100% 60% 100% Investment Multiple <1 0% 0% 10% 20% 0% 0% 5% 1<1.5 10% 5% 10% 20% 10% 25% 5% 1.5<2 25% 5% 25% 30% 20% 30% 10% 2<2.5 35% 50% 40% 50% 30% 35% 15% 2.5<3 45% 50% 50% 50% 40% 40% 20% 3<3.5 50% 50% 60% 50% 50% 45% 25% >3.5 50% 50% 70% 50% 50% 50% 30% * -Royalty & Cesslisted as per current PSC regime. Subject to change once PSC is revised **-All JV partners to share cessand royalty in proportion to their PI 22 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED RSC PARAMETERS Investor presentation Q4 2018-19 Block B-80 Kherem AA-ONHP-2017/19 Umatara Government Share of 12% 21% 22% 48% Revenue – LRP Government Share of 55% 99% 99% 99% Revenue - HRP 10% for crude oil, 12.5% for crude oil 12.5% for crude oil 12.5% for crude oil Royalty condensate and and condensate; and condensate; and condensate; Natural Gas 10% for natural gas 10% for natural gas 10% for natural gas Cess 0 0 0 0 Z=X+[(Y-X)*(R-0.01) / 0.99] X - % of Govt. share of revenue payable at LRP Y - % of Govt. share of revenue payable at HRP R – Average daily revenue in Million US Dollar Z - % of Govt. share of revenue when Avg. daily revenue > LRP and < HRP LRP – Lower Revenue Point HRP – Higher Revenue Point 23 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED DIROK: DELIVERED RESULTS ON FAST-TRACK MODE Investor presentation Q4 2018-19 24 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED UPCOMING NATURAL GAS GRID IN NORTH-EAST Investor presentation Q4 2018-19 North Eastern Gas/Oil fields North Eastern gas fields of Dirok, Kharsang and Kherem indirectly connected to Indradhanush through Numaligarh Pipeline envisaged as part of NE gas grid Existing DNPL pipeline Margherita Gas pipeline to be laid by Dirok JV ― North – east Gas Grid company Indradhanush (JV of IOC, ONGC, GAIL, OIL, NRL) plans to lay pipelines connecting all state capitals of North – East ― Gas Grid connects to Guwahati through Numaligarh and further to Duliajan ― Pipeline from Kusijan – Duliajan which will be laid by Dirok JV will connect to Gas Marketing hub of Duliajan which is connected to NE gas grid through Numaligarh 25 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED UPCOMING NATURAL GAS GRID IN NORTH-EAST Investor presentation Q4 2018-19 Company Name Core business North – East natural gas grid (Indradhanush) Gas transporter that serves 38-tea estates, connecting all seven NE state capitals and the AGCL 900 commercial establishments and about 27,500 domestic consumers national gas grid is conceptualised Manufactures Petrochemicals like Methanol APL and Formaldehyde using Natural Gas as Feedstock Natural Gas produced from North Eastern APGCL Assam state power generation corporation fields will have marketing and pricing freedom as per policy approved by MoPNG Brahmaputra Valley fertilizer corporation BVFCL located at Namrup Brahmaputra Cracker and Polymer Ltd. Is a BCPL Latent demand exists among existing and petrochemical complex located at Dibrugarh new customers of Natural Gas in the North- Eastern region IOC (AOD) Indian Oil refinery located at Digboi Exercise for obtaining EOI for direct gas NEEPCO North Eastern Electric Power Corporation purchase from Dirok conducted. Indicates latent demand for gas exists and market Numaligarhrefinery limited NRL willing to offer premium price 26 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED KHEREM (ARUNACHAL PRADESH – DSF BLOCK) Investor presentation Q4 2018-19 • Block Area: 16.45 Sq. Km. • Drilled Wells: 3 • Tested Production: ➢Oil 402 bopd ➢Gas not measured • Discovered Resources: DSF Data HOEC Internal Resources Million BBLs Million BBLs STOIIP 3 10.27 GIIP (BCF) 17 54.19 N BordumsaOCS • Reservoir Properties: 6’ x 18 KM ➢Two pay zones Girujan pay -1 & pay - 2 ➢Light oil – 38.7°API Kherem • Nearest facilities : Kharsang ➢Bordumasa Oil collecting Station via 6” pipeline 18kms DigboiRefinery ➢Digboi Refinery, via 6” pipeline 30 kms • Petroleum Mining Lease transfer/(PML) still awaited • Effective Date Starts from the date of PML transfer • Forest Clearance obtained. PML transfer awaited Dirok Field 16.2 km 27 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED ASSET PORTFOLIO & JV PARTNERS Investor presentation Q4 2018-19 Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – OIL India; Dirok HOEC Onshore Gas 27% Condensate – IOCL Gas – GAIL; Producing PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onshore Oil 35% Oil– IOCL Development North Balol HOEC Onshore Gas 25% GNRL Gas – GSPCL Development Deferred Asjol HOEC Onshore Oil 50% Oil – IOCL PI = Participating Interest Kharsang Geoenpro Onshore Oil 30%* Oil - IOCL Exploratory B-80 HOEC Offshore Oil & Gas 50% Adbhoot NA Kherem HOEC Onshore Oil & Gas 40% NA HOEC & Umatara Onshore Oil 10% NA IOC PY-3 ONGC Offshore Oil 21% NA AA-ONHP- HOEC Onshore Exploratory 100% NA 2017/19 HINDUSTAN OIL EXPLORATION COMPANY LIMITED 28 | COMPANY OVERVIEW Investor presentation Q4 2018-19 Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (67,000+) Retail & Others AKGT Board of Directors Vivek Rae P. K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Managing Director Executive Director Independent Director / Independent Independent Non-Independent Non-Independent & CFO Chairman Director Director Director Director 29 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED Note: Shareholding, & Board Members as on May 15, 2019 CONTACT Investor presentation Q4 2018-19 For further information, please contact: Company : Investor Relations Advisors : Hindustan Oil Exploration Company Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Vikash Verma jdaisy@hoec.com vgaurang@stellar-ir.com/ vikash.verma@stellar-ir.com www.hoec.com www.stellar-ir.com 30 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED GLOSSARY Investor presentation Q4 2018-19 2P - Proved + Probable reserves RSC - Revenue Sharing Contract BCF - Billion Cubic Feet of Gas HMGPP - Hollong Modular Gas Processing Plant GGS - Gas Gathering Station M-GPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million Standard Cubic Feet per Day MMSCMD - Million Standard Cubic Meter per Day STOIIP - Stock Tank Oil Initially In Place GIIP - Gas Initially In Place PI - Participating Interest PSC - Production Sharing Contract EC - Environmental Clearance 31 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED