(LiveMint)
Bad prospects have forced state-run Hindustan Petroleum Corp. Ltd (HPCL) to relinquish 19 of its 21 exploration and production blocks, ending its upstream ambitions. In its 2017-18 annual report, HPCL also said the net worth of its fully owned exploration and production subsidiary Prize Petroleum Co. Ltd has partially eroded.
“The management had considered ₹ 24.41 crore as an impairment loss in value of investment. Accordingly, a provision was accounted during FY2016-17. No further impairment is considered necessary during FY 2017-18,” the company said. HPCL did not reply to an email sent on 17 August. Until they were relinquished, HPCL held five blocks in the Krishna-Godavari basin; two each in Mumbai basin, Rajasthan and Kerala Konkan; one each in Cambay basin and Assam, and six in Cauvery basin.
The company’s annual report adds, “Block KK-DWN-2002/3 was relinquished during the year…blocks RJ-ONN-2004/3; MB-OSN-20010/2; RJ-ONN-2004/1, KK-DWN-2002/2, MB-OSN-2004/1, MB-OSN-2004/2; Blocks CY-DWN-2004/1,2,3,4, CY-PR-DWN-2004/1&2, KG-DWN-2004/1,2,3,5 and 6 are under relinquishment.”
