Hindustan Oil Exploration Company Ltd. has halted offshore oil production at its B-80 block due to severe weather, the company informed exchanges on Wednesday.
The floating storage offshore vessel, which stores oil produced from offshore fields beneath the seabed, has been unable to maintain its position for over 10 days due to severe weather, the company said.
The rope connecting the floating storage offshore to the single point mooring broke on Tuesday, it said. A single point mooring allows tankers to load or unload oil without entering a harbour and involves a floating buoy connected to the seabed.
The company has not disconnected the floating storage offshore from the single point mooring to prevent equipment damage. It plans to reconnect the two with a new rope when the weather improves.
As a result, oil production from the B-80 block is halted, and the oil wells are being treated with chemicals and diesel to prevent damage, the company said.
The B-80 oil block is significant for Hindustan Oil Exploration. In the fourth quarter of fiscal 2024, the block accounted for 61.7% of the company's total quarterly revenues and 42.7% of its total 2023-24 revenues.
As of June 2024, the field's oil production was 1,300 barrels per day, a 42.23% increase in the block's production level during January-March period. This increase followed the successful cleanup of blockages in the offshore field, leading to an additional 1,000 barrels of oil equivalent per day, according to Managing Director Ramasamy Jeevanandam.
The company expects a 50% increase in production in fiscal 2025, according to Jeevanandam.
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