IOC approves bid for stake in Medco: Report

The board of Indian Oil Corporation (IOC), the country's largest oil firm, on Wednesday cleared bidding for the acquisition of a 40 percent stake in Indonesian oil and gas exploration firm PT Medco Energi Internasional Tbk, Asia Pulse reported.

"We have completed due diligence of Medco and are now valuing the company. The board today cleared bidding for acquiring stake in the company," IOC chairman M S Ramachandran told reporters in New Delhi.

IOC will bid to buy a stake in Indonesia's biggest independent exploration and production company from Thailand's PTT Exploration and Production PCL (PTTEP) and Credit Suisse First Boston (CSFB). Ramachandran said IOC was interested in buying into Medco as part of its grand plans to enter oil and gas exploration.

IOC currently controls nearly 60 percent of the petroleum product market in India and owns 9 refineries in the country. However, it does have a stake in any of the producing oil and gas fields.

PTTEP, 65% owned by top Thai energy firm PTT PCL, has a 34 percent stake in Medco through a holding firm called New Links Energy Resources Ltd. CSFB owns 20 percent of New Links, and Indonesia's Panigoro family holds the remainder.

New Links owns 85.5 percent of Medco, which bought Australia's Novus Petroleum Ltd in June. (*)