Indian Oil to buy French company Maurel & Prom’s assets in Congo for $1.5 bn

Indian Oil Corporation is likely to acquire French company Maurel & Prom’s stake in oilfields in Congo for about $1.5 bn.

Maurel & Prom had announced sale of its interest in the producing fields of M’Boundi and Kouakouala and other exploration areas in Congo to Eni of Italy for $1.434 bn. Maurel & Prom had announced sale of its 48.6% interest in the M’Boundi oil field and 66 % in the Kouakouala A oilfield to Eni. Besides, it was selling 50% in Kouakouala B, C, D exploration blocks and 50% Kouilou exploration permit. But the transaction was subject to waiver of pre-emption right by partner Burren Energy of UK. The British firm has time till the end of March to exercise its pre-emption right. Indian Oil and its partner Oil India Limited are in advanced stage of discussions with Burren Energy for possible takeover of Maurel & Prom’s interest in Congo.

Burren Energy wants operatorship of the fields in Congo. By exercising its pre-emption right, it will first acquire Maurel & Prom’s interest in the fields and through a back-to-back agreement sell most of it to Indian Oil-Oil India combine. Burren Energy has 31.5% interest in M’Boundi field and 25% interest in Kouakouala. If the acquisition goes through, IOC-OIL will get 17,000 barrels of oil per day from M’Boundi field in 2007. This will increase to 28,000 barrels per day in 2010.

Read The Economic Times article.

Qatar’s RasGas to acquire 10% in Petronet LNG; stake valued at Rs. 460 crores

RasGas from Qatar may buy around 10%s equity stake in Petronet LNG (PLL) for a consideration of around Rs. 460 crores. PSU oil majors ONGC, BPCL, GAIL and IOC each having a 12.5 % stake in the company will divest 2.5% each to RasGas. RasGas is doing the due diligence.

RasGas is the first supplier of LNG to India and currently supplies 7.5 mn tonnes a year to Petronet’s LNG terminal at Dahej in Gujarat. RasGas and Petronet are in a 25-year sale and purchase agreement for LNG supplies. After diluting 10% stake to RasGas, BPCL, IOC, GAIL, ONGC and Gas de France will have stakes of 10% each in PLL. ADB will retain its 5.2% stake, while the remaining 34.8% lies with the Indian public.

The company requires Rs. 1700 crores for the expansion of Dahej LNG terminal from 5 mmtpa to 12 mmtpa. The company has tied up for a debt of $300 mn ($100 mn through FCCBs) and the balance would be funded by internal accruals. The company also envisages building the Kochi terminal at a cost of Rs. 2500 crores by 2010. The company has also allocated Rs. 300 crores for vessels, Rs. 460 crores for new jetty and Rs. 150 crores for solid cargo port.

Read the article in The Economic Times.