NEW DELHI, JANUARY 26: Indian Oil Corporation has offered close to 2.3 billion euros to acquire 40 per cent equity in mid-size exploration and production firm Maurel et Prom.

The team of IOC-Oil India Ltd on Tuesday offered 22 euros a share to take control of the French firm’s 255.9 million barrels of recoverable reserves and potentially-achievable 345.8 million barrels spread over 11 countries.

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Officials of both companies did not reply to e-mails or telephone calls to confirm the offer, but an industry source said that Maurel et Prom had not yet made up its mind even though it is expecting close to 26 euros a share or 2.8 billion euros for its equity.

If the price is accepted, the Share Purchase Agreement is scheduled to be signed by Saturday with final approval from the Indian government within 30 days of the signing. Once through, the Indian team will get 3.24 million tonnes of crude oil in 2006, followed by 3.61 million in 2007 and close to 3 million tonnes each year thereafter.

‘‘There, however, remains a potential for adding to the reserves and production from extension of the main producing field in Congo and from development fields in Gabon and from the numerous and prospective exploration upsides across Europe,’’ said an IOC analysis.

It added the crude oil from these fields were of good quality and had good demand in Europe but IOC-OIL would consider the possibility of exporting the crude to India.

The proposed acquisition is to be implemented through a share sale where promoters and associates’ equity will be first transferred to IOC-OIL combine followed by a public offer from the duo to the remaining shareholders/convertible bondholders at the accepted price.

According to the Maurel et Prom website, the two promoters — Pacifico (24.42 per cent stake) and Fr. Boulep (1.55 per cent)— control 25.97 per cent of the company’s equity. The remaining equity, 74.03 per cent, is listed as floating stock.

The IOC-OIL combine plan to set up a special purpose vehicle for the acquisition with both firms chipping in equal equity. This SPV would be set up in Mauritius, where IOC already has operations, for ‘‘tax efficiency’’ purposes.

The technical due diligence for the acquisition was conducted through Gaffney Cline Associates and legal vetting by Freshfields. HSBC was the financial advisor to IOC on behalf of the OIL-IOC duo. If IOC-OIL does not conclude the deal, Maurel et Prom’s promoters plan to launch a bid process.

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mareva