State-owned Indian Oil Corporation (IOC) has acquired Mercator Petroleum for about Rs 148 crore in an insolvency proceeding, according to regulatory filings by the company.

“The resolution plan submitted by IOC for the acquisition of 100 per cent stake in Mercator Petroleum Limited (MPL) has been approved by the National Company Law Tribunal, Mumbai Bench vide its order dated November 2, 2023, under the relevant provisions of the Insolvency and Bankruptcy Code, 2016,” the firm said in the filing.

MPL has an on-land oil and gas exploration block in Cambay Basin, Gujarat. The block CB-ONN-2005/9, which the company had won in the 7th NELP bid round in 2008, has a potential oil discovery of 45.5 million barrels of in-place reserves.

IOC’s Koyali refinery is located 60km from the block and in November 2019 it signed a contract to buy oil from the block. “IOC will implement the Resolution Plan and complete the regulatory processes, including obtaining necessary approvals, if any, for successful implementation of the Resolution Plan,” it said.

The resolution plan says the company will pay Rs 135 crore to secured financial creditors, who had admitted claims of Rs 291 crore. No payment has been provided for unsecured financial creditors, who had admitted claims of Rs 118 crore. The resolution plan offers Rs 5.40 crore to operational creditors against their total admitted claims of Rs 73 crore.

PTI