Hindustan Oil Exploration Company Limited has issued a Bank Guarantee of ₹15.12 crores following a directive from the Madras High Court in connection with an ongoing enforcement petition matter. The development represents the latest update in a litigation case that has been ongoing since 2020.

Court Proceedings and Directive

The Madras High Court dismissed an application filed by Hardy Exploration & Production (India) Inc. (HEPI) on October 28, 2025, which sought interim relief related to the ongoing matter before the Gujarat High Court. However, the court instructed the company to furnish a Bank Guarantee as an interim arrangement.

Background of the Litigation

The enforcement petition stems from a foreign arbitration award dated February 28, 2020, filed by Hardy Exploration & Production (India) Inc. before the Gujarat High Court. The company has been providing regular updates on this matter through multiple intimations since August 2020, with the most recent updates in April and September 2023.

The Bank Guarantee amount corresponds to the previously disclosed claim of USD 1.16 million with interest, which has been consistently reported as a contingent liability in the company's audited financial statements since FY 2020-21.

Impact Assessment

The company has clarified that these developments are procedural and interim in nature, emphasizing that they do not materially impact the company's operations or financial performance. The final liability remains subject to the outcome of the matter pending before the Gujarat High Court.

Regulatory Compliance

The update was provided under Regulation 30 of the SEBI (LODR) Regulations, 2015, continuing the company's practice of keeping stakeholders informed about significant litigation matters. The communication was addressed to both the National Stock Exchange of India Ltd. and BSE Limited on January 19, 2026.

Hindustan Oil Exploration Company has provided a bank guarantee worth $1.16 million to address a claim from HEPI (Hindustan Energy Partners International). This development represents a significant financial commitment by the oil and gas exploration company to resolve outstanding obligations.

Bank Guarantee Details

The company has issued the bank guarantee to cover the $1.16 million claim from HEPI. This financial instrument serves as a security measure, providing assurance that the company can meet its financial obligations related to the outstanding claim.

Financial Implications

The provision of this bank guarantee demonstrates Hindustan Oil Exploration's commitment to maintaining its business relationships and ensuring operational continuity. Bank guarantees are commonly used in the oil and gas sector to provide financial security for various business transactions and contractual obligations.

This move indicates the company's proactive approach to addressing financial matters with its business partners, particularly HEPI, which appears to be connected to the company's exploration and production activities.

Company Operations

As an oil and gas exploration company, Hindustan Oil Exploration operates in the energy sector, focusing on crude oil and natural gas exploration activities. The resolution of financial claims through bank guarantees is a standard practice in the industry, helping companies maintain their operational licenses and partnerships while addressing outstanding obligations.