IndianOil-OIL eye LSE-listed co
New Delhi   29-Jul-2009
Flagship refiner-marketer IndianOil and northeast explorer Oil India have jointly initiated talks for a possible acquisition of independent explorer Bermuda-incorporated Gulf Keystone Petroleum Ltd which has operations In Iraq's Kurdistan and Algeria. IndianOil and Oil India executives declined to comment. Sources said the talks were at a preliminary stage but insiders said the contours of valuation indicated that the acquisition could cost over $2 billion if the deal worked out. The Indian firms are talking to two promoter groups of Gulf Keystone who are based out of Kuwait, agency reports said. IndianOil and Oil India had come together in 2005 for making overseas acquisitions. IndianOil sources said it was too early for them to say how much stake the refiner will have. Gulf Keystone is listed on the LSE and has six exploration blocks and two producing fields in Algeria. In November 2007, the company acquired interests in two production-sharing contracts in the Kurdish region of Northern Iraq. Gulf Keystone Petroleum LLC is the largest shareholder in Gulf Keystone with 10.84% interest. TF Kozel and AA Al-Qabandi are both shareholders in Gulf Keystone Petroleum.