State-owned Indian Oil Corporation (IOC) has acquired 100% stake in Mercator Petroleum Ltd (MPL) for about INR 148 crore in an insolvency proceeding. The acquisition has been approved by the National Company Law Tribunal, Mumbai Bench.
MPL has an on-land oil and gas exploration block located in Cambay Basin, Gujarat. The block, which the company had won in 7th NELP bid round in 2008, has potential oil discovery of 45.5 million barrels of in-place reserves.
IOC will pay INR 135 crore to secured financial creditors, who had admitted claims of INR 291 crore. No payment has been provided for unsecured financial creditors, who had admitted claims of INR 118 crore. The resolution plan offers INR 5.40 crore to operational creditors - vendors, workmen, employees and statutory dues - against their total admitted claims of INR 73 crore. IOC will also bear insolvency proceeding cost of INR 8.7 crore.
Cayman Island-based oil services company Halliburton Offshore Services Inc had initiated insolvency proceedings in August 2021 after Mercator defaulted on payment of INR 2.87 crore.
Want to receive such news items in your inbox? Click Here to sign up for a trial.