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IOC may pick French company’s Congo oilfields stake for $1.5 bn

IOC may pick French company’s Congo oilfields stake for $1.5 bn
PTI
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First Published: Mon, Mar 12 2007. 12 18 AM IST
Updated: Mon, Mar 12 2007. 12 18 AM IST
New Delhi: Indian Oil Corp. (IOC) is likely to acquire French company Maurel and Prom’s stake in Congo oilfields for about $1.5 billion (Rs6,600 crore).
Maureland Prom had on 22 February announced sale of its interest in the oil producing fields of M’Boundi and Kouakouala and other exploration areas in Congo to Eni of Italy for $1.434 billion. But the transaction was subject to waiver of pre-emption right by partner Burren Energy of the UK. “Burren Energy is opposed to the sale. It is likely to exercise its pre-emption right to stop the sale and instead bring in IOC,” an industry source said. The British firm has time till the end of this month to exercise its pre-emption right. It has 31.5% in M’Boundi field; 25% in Kouakouala.
IOC and its partner, Oil India Ltd, are in an advanced stage of discussion with Burren Energy for possible takeover of Maurel & Prom’s interest in Congo.
“By exercising its pre-emption right, Burren Energy will first acquire Maurel and Prom’s interest in the fields and through a back-to-back agreement sell most of it to the IOC-OIL combine,” he said. Maurel and Prom had announced sale of its 48.6% in M’Boundi oil field and 66% in Kouakouala-A oilfield to Eni.
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First Published: Mon, Mar 12 2007. 12 18 AM IST
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