3 Oct 2017 14:47
3 October 2017
Hardy Oil and Gas plc
(LSE: HDY)
REPORT ON PAYMENTS TO GOVERMENTS FOR THE YEAR ENDED 31 MARCH 2017
INTRODUCTION
This report sets out details of the payments to governments made by Hardy Oil and Gas plc and its subsidiary undertaking Hardy Exploration & Production (India) Inc ('Hardy' or 'the Group') for the year ended 31 March 2017 as required under the Disclosure and Transparency Rules of the UK Financial Conduct Authority (the 'DTRs'). The DTRs require companies in the UK and operating in the extractive sector to publicly disclose payments made to the governments in the countries where they undertake exploration, prospection, development and extraction of oil and natural gas deposits or other materials. This report is available to download on the Hardy Oil and Gas plc website www.hardyoil.com.
BASIS FOR PREPARATION
This report is prepared in accordance with The Reports on Payments to Governments Regulations 2014 as enacted in the United Kingdom in December 2014 and amended in December 2015 (the 'Regulations'). Total payments below €100,000 made to the government are excluded from this report as permitted under the Regulations.
Government
Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government, which includes national oil companies.
Payments - The information is reported under the following payment types
Production entitlement - Such payments are the host government's share of production in the reporting period derived from projects operated by Hardy. In India the Group's right to extract hydrocarbons is governed by Production Sharing Contracts (PSC). Under the provisions of the PSC's the Government of India is entitled to a proportion of net revenue generated from the sale of hydrocarbon production (Profit Petroleum). This payment is made to the Ministry of Petroleum and Natural Gas, Government of India.
Taxes - These are taxes paid by the Group to the Department of Revenue, Ministry of Finance, Government of India on its income and profits in accordance with the Income Tax laws of India.
Royalties - These are payments for the right to extract oil and gas resources, typically at a set percentage of revenue less deductions that may be taken (Levies). Under the provisions of the PSC's, that Hardy operate, royalty and other levies are payable by a national oil company. Such royalty entitlement is to be paid to the Ministry of Petroleum and Natural Gas, Government of India.
Licence fees, rental fees, entry fees, and other consideration for the licences and/or concessions - These are fees and other sums paid as consideration for acquiring a licence for gaining access to an area where activities are performed. Under the provisions of the PSC's, that Hardy operate, license fees and rentals are payable by a national oil company. License fees and rentals due for other assets were well below the threshold prescribed above.
Infrastructure - These are payments that relate to the construction of infrastructure not substantially dedicated for the use of extractive activities.
Exchange rate - Payments made in currencies other than US dollars are translated for this Report based on the foreign exchange rate at the relevant monthly average rate (for payments less than US$ 50,000) and daily average rate (for payments more than US$ 50,000).
PAYMENTS TO GOVERNMENTS - for the year ended 31 March 2017
India | CY-OS-90/1 (PY-3) | CY-OS/2 |
Value of production entitlement | Nil | Nil |
Value of royalties | Nil | Nil |
Licence fees | Nil | Nil |
Infrastructure improvements | Nil | Nil |
Total ($million) | Nil | Nil |
Notes: The two assets operated by Hardy did not produce hydrocarbons in the year ended 31 March 2017. As a result no royalty or production entitlement accrued through the reporting period.
For further information, please visit www.hardyoil.com or contact:
Hardy Oil and Gas plc | 012 2461 2900 |
Ian MacKenzie, Chief Executive Officer Richard Galvin, Treasurer & Corporate Affairs Executive |
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Arden Partners plc | 020 7614 5917 |
William Vandyk Ciaran Walsh |
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Tavistock | 020 7920 3150 |
Simon Hudson Niall Walsh |
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About Hardy
Hardy Oil and Gas plc is an upstream oil and gas company focused in India. Its portfolio includes a blends of exploration, appraisal and production assets. Hardy's goal is to evaluate and exploit its asset base with a view to creating signification value for its shareholders.
Hardy Oil and Gas plc is the operator of PY-3 oil field (shut-in July 2011) located offshore India's east coast in the Cauvery basin. Hardy also has interests in two offshore exploration blocks in India's Saurashtra and Cauvery basins.
Hardy is incorporated under the law of the Isle of Man and headquartered in Aberdeen, UK. Ordinary shares of Hardy were admitted to the Official List and the London Stock Exchange's market for listed securities effective 20 February 2008 and under symbol HDY.
The Company's India assets are held through the wholly owned subsidiary, Hardy Exploration & Production (India) Inc, located in Chennai, India.
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