Reliance consortium set to withdraw from India block

Hardy Oil and Gas (LSE: HDY) has consented to Reliance Industries’ plan to relinquish the KG-DWN-2003/1 (D3) exploration license offshore eastern India.

Offshore staff

LONDON --Hardy Oil and Gas (LSE: HDY) has consented to Reliance Industries’ plan to relinquish the KG-DWN-2003/1 (D3) exploration license offshore eastern India.

Reliance issued its proposal following access restrictions imposed by India’s government on Nov. 10.

According to Hardy, the restrictions ruled out further exploration/development in the impact zone area, preventingfurther investment in the unrestricted area of the block due to the anticipated increase in cost and risk.

The situation wasfurther compounded by the uncertainty of long-term natural gas pricing in India following the government’s policy, announced earlier in 2014, which imposed pricing at a significant discount to the D3 partners’ expectation of regional market pricing.

12/29/2014

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