IOC loses out race to buy Maurel and Prom's pie

Indian Oil Corporation, the nation's largest refiner, has lost out in the race for acquiring French company Maurel & Prom's stake in oilfields in Congo.

Burren Energy of UK, which was supposed to exercise its pre-emption rights to stop sale of M&P's stake in Congo fields to Italy's Eni Spa and instead get IOC in the French company's shoes, has dumped the Indian firm to reach an agreement with Eni, a company source said.

Eni will sell 5.5 per cent out of the 48.6 per cent M&P stake it is acquiring in 56,000 barrels per day M'Boundi oil field and two per cent out of the 50 per cent M&P interest it is taking over in the surrounding Kouilou exploration license for $154 million.

"Originally, Burren Energy, which had 31.5 per cent stake in M'Boundi field and 35 per cent interest in Kouilou, was opposed to M&P

selling its stake to Eni. Burren wanted operatorship of the fields and was in advanced stage of talks to rope in IOC and its partner Oil India Ltd after it stops the sale by exercising pre-emption rights," the source said.

IOC-OIL combine had no problems with Burren taking over operatorship and they had even agreed to assign a portion of M&P stake to the UK firm.

But, Burrent reached an agreement with Eni earlier this week wherein the Italian firm will retain the operatorship. 

On February 22, M&P announced sale of its 48.6 per cent stake in the producing fields of M'Boundi and 50 out of the 65 per cent interest in Kouilou to Eni for $1.434 billion.

Also included in the sale were M&P's 66.7 per cent stake in Kouakouala field.