Indian Oil Corp is expected to bid for French company Maurel & Prom's stake in the oil producing fields of M'Boundi and Kouakouala and other exploration areas in Congo for about $1.5 billion.

The oil field holds 1.4 billion barrels of in-place oil reserves and produces high-quality oil.

Maurel & Prom holds a 48.6-per cent interest in M'Boundi oil field and 66 per cent in Kouakouala-A oilfield to Eni. Besides, it was selling 50 per cent in Kouakouala B, C, D exploration blocks and 50 per cent Kouilou exploration permit.

Last month Maurel & Prom had announced an agreement to sell its stake that it holds in partnership with the UK-based Burren Energy, to Eni of Italy for $1.434 billion. However, Burren, which has pre-emption rights, opposed the transaction.

Burren Energy has 31.5 per cent interest in M'Boundi field and 25 per cent interest in Kouakouala. If the acquisition goes through, IOC-OIL will get 17,000 barrels of oil per day from M'Boundi field in 2007. This will increase to 28,000 barrels per day in 2010.

Burren is likely to exercise its pre-emption right some time before the end of March to stop the sale and bring in IOC instead, which along with its partner Oil India Ltd, is in advanced stage discussion with Burren for the possible takeover of Maurel & Prom's interest in Congo.

Burren Energy is keen on being the operator of the Congo oil fields and by exercising its pre-emption right, it will first have to acquire Maurel & Prom's interest then sell it to the IOC-OIL combine.

The IOC-OIL combine, which is interested in Maurel & Prom's Congo assets, has offered about $1.5 billion, $100 million more than Eni's price.