HOEC has secured a new contract area in the Mumbai offshore basin from the Government of India to assess discovered hydrocarbons.

The company announced this through an exchange filing on Tuesday.

Under the scope of this award, HOEC will study hydrocarbons that have already been discovered in this Mumbai offshore area and look at ways to develop the region further, including sharing infrastructure and creating operating efficiencies across its wider offshore holdings.

This isn’t a completely new region for the company. HOEC already operates in the western offshore zone through its existing B80 field, and it’s currently working on developing the B15 field, which the government had awarded it back in 2025.

The company said this latest contract builds directly on that existing footprint and strengthens its overall presence in the region.

The award covers multiple discovered field areas within the Mumbai offshore basin, along with their geographical boundaries and existing well locations.

There’s still a formal step left before the deal is finalised. The whole arrangement depends on HOEC and the President of India signing a revenue sharing contract.

Once that happens, details like the bid work programme, commercial terms, and the exact boundaries of the contract area will be shared separately by the company.

The approval for this contract area came through an official communication from the Directorate General of Hydrocarbons, under the Ministry of Petroleum and Natural Gas, in a letter dated 31 August 2026.

This development adds to a fairly strong recent run for HOEC. Over the past month, the company’s shares have returned more than 5%, and looking at the last six months, the stock has climbed over 28%.

The news of this new contract also pushed the stock up around 4 to 5% during intraday trade on Tuesday, adding to that ongoing momentum.

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!