Chennai-based Invenire Energy has pipped Hindustan Oil Exploration Company (HOEC) to bag stakes in two hydrocarbon assets — the Kharsang oilfield in Arunachal Pradesh and the PY-3 field in the Bay of Bengal.

Invenire won Kharsang through the NCLT process, taking over 25 per cent interest in the field that produces 1,000 barrels of oil a day, outbidding HOEC. It has also taken over Hardy Oil UK’s India assets – mainly PY-3 – once again paying more than HOEC. The two transactions are unconnected, except for the two companies involved and Manish Maheshwari, a former Joint Director of HOEC. Incidentally, HOEC owns Geopetrol, which has 25 per cent interest in Kharsang.

Invenire Energy is promoted by Atyant Capital India Fund-I of Chennai. Atyant holds 66 per cent and the rest is held by Manish Maheshwari and family. It made news last year when it acquired Tata Petrodyne.

Invenire will pay ₹92 crore for Jubilant Energy (Kharsang) Pvt Ltd’s (JEKPL) 25 per cent interest in the Kharsang oilfield. JEKPL owes ₹1,231 crore to three banks — Central Bank of India (₹104 crore), SBI (₹502 crore) and Exim Bank (counter corporate guarantee of ₹625 crore). The banks will share the ₹92 crore, against their total loan to Jubilant. The underlying asset for the entire loan amount was the 25 per cent interest in the Kharsang field.

The battle for the Kharsang field has seen many twists and turns. At one point it looked HOEC had bagged it, having offered ₹160 crore in a closed bid, against Atyant’s ₹135 crore (Atyant had offered to pay a higher rate of interest on deferred payments). HOEC wrote to then Resolution Professional Mukesh Mohan, pointing out irregularities in the process. In March 2018, a Disciplinary Committee of the Insolvency and Bankruptcy Board of India found that Mohan had contravened the Insolvency Code in many cases including that of Kharsang and debarred him.

The entire process had to be re-started when Exim Bank, which had earlier been excluded from the Committee of Creditors, filed to be included. The National Company Law Appellate Tribunal said that there could be no bidding and counter bidding, but gave the Committee of Creditors the liberty to “ask for negotiations with the Resolution Applicants”.

The Committee interpreted it as a permission for fresh bids and said the parties could only offer cash bids. It is learnt that HOEC offered ₹79 crore; Atyant first offered ₹81 crore, but later raised it to ₹92 crore.

Bid for Hardy Oil assets

Meanwhile, HOEC began talks with Hardy Oil Plc for taking over its 18 per cent interest in the PY-3 offshore oilfield, which has been idling since July 2011. The other stakeholders in the field are HOEC (21 per cent), Tata Petrodyne (now owned by Invenire with 21 per cent), and ONGC (40 per cent).

HOEC offered $1.5 million for Hardy Oil’s Indian arm, which also owns 75 per cent in the CY-OS/2 field in the Bay of Bengal and 10 per cent in GS-01 (in which Reliance Industries holds the other 90 per cent).

However, just before the deal was consummated, Invenire offered $8.75 million.

With this, rivals HOEC and Invenire Energy, part-owned by a former Joint Managing Director of HOEC, have ended up being partners in both PY-3 and Kharsang.

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