INDIAN OIL Corporation (IOC) has approached French multinational ELF to acquire 35 per cent stake in the Balal oilfield in Iran.
IOC has intimated ELF its interest in the exploratory oil block and negotiations for taking stake in the Iranian oil field are in progress, company officials said.
When contacted IOC chairman M A Pathan declined to divluge details of the negotiations with ELF saying "we have made a request to consider our proposal and a final decision is awaited."
IOC officials said ELF was positive about IOC's proposal and had indicated that the decision to allow the Fortune 500 company a stake in the Balal oil field would be taken after its worldwide merger with another French company Totalfina comes into operation.
The chairman along with Oil and Natural Gas Corporation (ONGC) chairman and managing director B C Bora had in December visited Iran to work out the possibilities of the two companies participation in the oil field.
RBI had already given a clearance to IOC for investing about $15 million in the Iranian oil field, the officials said, adding ONGC's participation in Balal would come only after the marketing company reaches the stage of acceptability by ELF.
IOC and ELF are also planning a tie-up for carrying out research and development activities in India besides working out possibilities to market other fuel additives, IOC officials said.
IOC and ELF have earlier had joint participation in Indian ventures like marketing diesel additives in the country, they added.
The discussions for the Iranian oilfield had taken a new turn with the project changing hands from Premier Oil of UK to the French oil company ELF and the latter is yet to respond to IOC's willingness to take 35 per cent equity in the project.
In case the deal comes through, this would be the first overseas venture of IOC in an exploratory field, they said, adding this would help the corporation bring about 40 lakh tonnes of crude annually into the country.
IOC had to face a delay of over 18 months to get necessary clearances for the project, they said and pointed out that the corporation had to initiate the negotiation process afresh due to change of ownership of the field.
The officials said that as the corporation was sourcing its oil imports mainly from the 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.
