HOEC settles gas row with GAIL; shares surge 4%

Hindustan Oil Exploration Company (HOEC) today said its ongoing dispute with state-run gas utility GAIL, in relation to sale of natural gas from PY-1 field, has been settled.     

In a filing to the Bombay Stock Exchange, HOEC said as the operator of PY-1 field, it has executed a tripartite settlement agreement with GAIL India and PPN Power Generating Company in this regard.     

The tripartite settlement agreement entails the termination of natural gas sale and purchase agreement with PPN and settlement of the ongoing dispute with GAIL in relation to the sale of natural gas from PY-1 field.     

HOEC, which has a 100 per cent operated participating interest in PY-1 Field expects it to generate an annual revenue of more than $65 million upon reaching first plateau production.     

The PY-1 is an offshore field of Cauvery Basin.     

Shares of the company reacted to this news in a positive manner and surged over four per cent in early morning trade to witness an intra-day high of Rs 366.70.