Indian Oil in talks to buy Maurel & Prom

Font Size

Print

Feedback

Email

Discuss

New Delhi, Feb 23: Indian Oil Corp (IOC), the country’s largest oil firm, is in talks to acquire French exploration company Maurel & Prom, a top company official said on Wednesday.

“We are in talks with Maurel & Prom,” the official said but refused to divulge details. IOC, the dominant oil refining and marketing company, had last year raised a $2 billion war chest for the acquisition of a mid-sized oil and gas exploration firm and has been in talks with Maruel & Prom since October. “Negotiations are continuing,” he said.

IOC is believed to have offered around $1.2 billion to acquire the exploration firm, which has producing assets in Congo, Vietnam and Cuba with reserves of 300 million barrels of oil equivalent proven and probable and about 270 million barrels of possible oil equivalent.

Industry sources said Maurel & Prom has been asking for a ‘premium’ over the IOC price.

The Financial Times reported on Wednesday that IOC was in exclusive talks to acquire Maurel & Prom. IOC is also considering a deal to buy the Paris-based company’s African assets amid signs that M&P may no longer favour a full sale, the newspaper said.

M&P has also attracted a competing bid from a leading Chinese energy company, the FT reported. M&P Has a market capitalisation of $2.3 billion.