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
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.
