CASH-rich Indian companies are actively eyeing Scottish oil and gas services groups to meet their fast-increasing energy needs. Despite having access to India's natural oil and gas reserves, many lack the know-how, oil rigs and engineering talent needed to extract the reserves. They see Scottish services companies as a way to plug the gap.

Reliance Industries, India's biggest privately owned company, was last week linked with a bid for Aberdeen-based Wood Group, although industry sources later doubted there was any substance to it.

However, Jeff Corray, head of UK oil and gas at KPMG, said that since the beginning of the year he has been approached by several Indian companies interested in making acquisitions in Scotland.

He said: "I often get calls for opportunities from Indian companies that want to look at Scottish companies. There's definitely a growing trend."

Iain Armstrong, analyst at Brewin Dolphin, said: "It wouldn't surprise me if [an Indian company] tried to do a deal. We could see some sort of joint venture."

Scotland's oil and gas services industry is centred around the north-east. Apart from Wood Group, other major players include Abbot Group and the privately owned KBR.

Abbot, which owns and operates rigs, is growing rapidly and recently bought Songa Drilling for GBP 247m. In the last 12 months, the group spent GBP 112m expanding its rig fleet and a further GBP 75m buying a unit from Prosafe, a Norwegian drilling contractor.

Abbot's shares closed at 291.25p on Friday, valuing the business at more than GBP 650m.

Brewin Dolphin's Armstrong questioned the rationale for a conglomerate such as Reliance that owns oil production interests buying an energy services business such as Wood which has been expanding in the US. Sir Ian Wood, the chairman and chief executive, and his family hold 30 per cent of the shares which would require a bidder to seek an agreed offer.

Armstrong said: "The idea of an oil producer buying an oil services company is a bit strange. While you will have first pick of the services - and oil services is in strong demand - if you are going up against the likes of Exxon, they are going to give business to rival [services groups]."