Oil India (OIL)-Indian Oil Corporation (IOC) combine has decided not to make a revised offer to acquire Gulfsands Petroleum Plc after the Board of Gulfsands refused the OIL and IOC's request for due diligence before making a firm offer.

The consortium wanted to conduct due diligence of Gulfsands particularly its Syrian assets before making a firm revised offer. In end-April 2010, Gulfsands had rejected a Pound 381million (approx Rs 2,571.75 crore) offer made by OIL-IOC conglomerate.

Gulfsands's main asset is its 50 per cent stake in Block 26 in north-east Syria which includes the Khurbet East and Yousefieh fields. Oil production is expected to rise to about 20,000 bpd by December 2010 from the current 11,000 bpd. It also owns interests in 44 blocks, including 30 producing blocks, off the coast of Texas and Louisiana.

In December 2005, the Union Government allowed IOC and OIL to jointly bid for oil and gas properties abroad. The two formed a 50:50 JV and have been pursuing acreages in Africa, the Middle East, South-East Asia, South America, CIS countries and Russia.

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