Chinese firm Sinopec is believed to have joined ONGC Videsh Ltd (OVL) in a race for taking over Russia-focused oil company Imperial Energy.
Just when OVL, the overseas arm of state explorer Oil and Natural Gas Corp, entered the final stages of talks with Imperial, China Petroleum and Chemical Corp or Sinopec is believed to have made a counter offer.
Imperial Energy today confirmed interest by one more firm when it said, "the board of Imperial confirms that it has received another approach in relation to a possible cash offer for the company."
The company's statement on its website, however, did not identify the new suitor.
Last week, OVL was close to making a $2.5-billion bid for London-listed Imperial Energy but the entry of the Chinese firm may hot up the price war.
Indian and Chinese firms have rivalled each other for prime oil and gas properties overseas and wherever there is a direct competition, its the latter which has emerged winner.
More From This Section
OVL lost out on Canadian firm Encana's properties in Ecuador when a Chinese consortium bid $1.42 billion.
It also lost PetroKazakhstan to China National Petroleum Corp's $3.6 billion bid. In Angola, it lost out on taking 50 per cent in BP-operated Block 18 when the African nation preferred China.
The relatively small British oil and gas company based in Leeds in UK, Imperial, had on July 15 stated that "it is in discussions in relation to a possible cash offer for the company at a price of 12.90 pound sterling per share (about $2 billion)."
Though Imperial did not identify OVL as the possible suitor, bankers associated with the deal said the Indian flagship acquirer was the company in talks with the British firm.