Indian red tape could mean firm pulls out

India-focused Hardy Oil and Gas said yesterday it may have to change tack and turn its attention to other areas.

Aberdeen-based Hardy is led by former KCA Deutag director IanMacKenzie as chief executive.

Alasdair Locke, the former executive chairman of Abbot Group, now KCA Deutag, is its chairman. The company’sportfolio includes exploration, appraisal and development assets.

In an annual results statement yesterday, the firm said red tape in India, including a much-delayed government appeal against an arbitration tribunal ruling, was holding back its activities in the country.

Mr Locke said: “Should the status quo in India remain and tangible progress not be made in a reasonable time-frame we will reevaluate our current India focus. The board and managementhave the benefitof significant experience of other oil and gas provinces worldwide.

“The group remains in a strong financial position from which to either fund its planned work activity for the Indian asset portfolio or to implement a change of geographical focus.”

Mr MacKenzie added: “Energy demand in India continues to grow at an exceptional rate and the GOI (government of India) has set some ambitious domestic production targets.

“To achieve its targets, policywill need to continue to evolve to facilitate the timely exploitation and development of the country's natural resources.”

Hardy posted pre- tax losses of £16.9million for the year to March 31, 2015, compared with losses of £3.5million in the previous 15 months.

Stockbroker Arden Partners said Hardy’s suggestion it could turn its attention to other parts of the world was “pragmatic”.

“The group remains in a strong financial position”