IOC makes $1.2bn bid for French E&P firm

Indian Oil Corporation (IOC) is in talks to acquire French exploration and production (E&P) company Maurel & Prom (M&P). "We are in talks with Maurel & Prom," a top company official said, but refused to divulge details.

IOC had last year raised $2 billion for the acquisition of a mid-sized E&P firm, and has been in talks with M&P since October.  "Negotiations are continuing," the official 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 proven oil equivalent and about 270 million barrels of possible oil equivalent.

Industry sources said M&P has been asking for a premium over the IOC price.

The Financial Times reported today 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 report said.

M&P has also attracted a competing bid from a leading Chinese energy company, the report added.

M&P has a market capitalisation of 1.78 billion euros ($2.3 billion).