RBI cleared the $15 million investment proposal recently to allow IOC to acquire stake in the Balal oil project, being promoted by French oil giant Elf, they said.

Stating that IOC would acquire about 35 per cent equity in the joint venture, officials said that the corporation already had preliminary round of talks with the French company and soon a high-level delegation would go to Balal for finalising details.

IOC had earlier made an in-principle deal with the project promoter Premier Oil, which sold its equity to Elf, the officials said.

They, however, pointed out that the delay in getting the necessary clearance for the proposal, mooted about 18 months ago, could have cost the corporation the equity share in the project, but added that the French company was ready to take IOC in the project.

IOC officials said that initially RBI had given the permission for five years which could be revised at the end of the contract period.

Stating that Elf had shown readiness to take IOC as a partner in the Balal project after acquiring stake from Premier, officials said that pre-production work on the oil field was in full swing and oil extraction from the fields would start soon.

The project is estimated to have recoverable oil reserves of about 11 mt and IOC's share was expected to be slightly less than 4 mt, they added.

The officials said that as the corporation was sourcing its oil imports mainly from West Asia, it would be possible for IOC to evacuate oil from the project and bring the same to India instead of going in for a swap deal.

Oil and Natural Gas Corporation (ONGC) and its overseas arm ONGC Videsh have also been trying to acquire oil equity in West Asia, Russia and eastern Europe but none have been able to acquire entirely or partly a developed oil field abroad.