The Hindu Business Line : IOC, Oil India move on Congo assets acquisition suffers setback

Kolkata March 20 IndianOil (IOC) and Oil India (OIL) combine's initiative to acquire French firm Maurel & Prom's Congo assets, has suffered a setback.

IOC-OIL offered approximately $1.5 billion-$66 million more than an existing offer by ENI of Italy, for acquiring the assets. The bid was placed through Burren Energy of the UK. The latter is M&P's minority partner in Congo assets and holds pre-emptive rights.

According to sources, Burren had previously shown sufficient interest in IOC-OIL's offer and was considering using its pre-emptive rights to help the Indian companies acquire M&P's interests.

As per the proposal, Burren was expected to block an existing agreement between M&P and ENI for transfer of interests at a total consideration of $1.434 billion. The British company had reportedly expressed reservations over the proposed transaction (between M&P and ENI).

However, according to sources, Burren has recently withdrawn from negotiations with IOC and OIL. "The chapter seems to be closed", a source close to the development told Business Line.

M&P holds 48.6-per cent interest in M'Boundi oil field and 66 per cent in Kouakouala-A oilfield in Congo. The oil fields have 1.4 billion barrels of in-place reserve and produce high-quality oil.

This apart, the company holds 50 per cent operating stakes in Kouakouala (B, C, D) and Kouilou exploration blocks.

Burren Energy has 31.5 per cent interest in M'Boundi field and 25 per cent interest in Kouakouala.

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