Hindustan Oil Exploration Company Limited (HOEC) has provided an update regarding the enforcement petition filed by Hardy Exploration & Production (India) Inc. (HEPI) before the Hon’ble High Court of Gujarat. HEPI had also filed an application before the Hon’ble High Court of Madras seeking interim relief.

On October 28, 2025, the Madras High Court dismissed HEPI’s application but directed HOEC to furnish a Bank Guarantee (BG) for ₹15.12 Crores as an interim arrangement. This BG will remain in force until the disposal of the case pending before the Gujarat High Court.

The issued BG amount corresponds to the previously disclosed claim of USD 1.16 million with interest. This exposure has been consistently reported as a contingent liability in the Company’s audited financial statements since FY 2020-21. HOEC states that these developments are procedural and interim, and do not materially impact the Company’s operations or financial performance. The final liability is subject to the outcome of the sub judice matter before the Gujarat High Court.