The Hindu Business Line : IndianOil shows interest in Niko's oil, gas assets

Sources, however confirmed that IOC had expressed interest in acquiring the entire oil and gas assets including the minority stake in off-shore joint venture with Reliance.

Kolkata , Jan. 31

INDIANOIL has placed a detailed offer for acquisition of Canadian major Niko Resources Ltd's Indian oil and gas assets.

The assets include Niko's 10 per cent interest in the deep-water block Krishna-Godvari (KG) basin held jointly with Reliance (90 per cent).

The joint venture partners have already struck gas in the block. Niko is an operator with 33 per cent stake in Hazira off-shore oil and gas field. Though production is yet to reach its peak, the field produces over 53 million cubic ft of gas per day with a potential to produce up to 6,000 barrels of associated oil per day.

The company owns complete stake in the Surat block, which is under development and is a minority partner in NEC-25 offshore blocks. The other blocks held by the company are still in the exploratory stage.

IOC sources said that the company has recently communicated to Niko in this regard. IOC had previously submitted an expression of interest , which was reportedly rejected by the foreign major on the ground that the plan was `not sufficiently clear and certain.'

"We have recently communicated to Niko and awaiting their response," a senior IOC official said without confirming whether they have placed the final bid. Sources, however confirmed that IOC had expressed interest in acquiring the entire oil and gas assets including the minority stake in off-shore joint venture with Reliance.

Sources said the company could not make a firm offer in their last attempt as it was awaiting the cabinet nod towards fast-track approval for acquisition of exploration and production assets.

On its proposed acquisition of exploration, production and downstream assets in two to three African countries including Gabon in West Africa, sources said that the proposals were yet to reach any definitive stage. On its reported bid to takeover an E & P company in Europe, sources said that negotiations were still at a preliminary stage.

IOC had already obtained board approval for carrying out due diligence exercise and evaluations for assets identified for acquisition.

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