The RBI cleared the $ 15 million investment proposal recently to allow IOC to acquire stake in the Balal oil project, being promoted by French oil giant ELF, they said.

IOC had earlier made an in-principle deal with the project promoter Premier Oil, which sold its equity to ELF, the officials said. They, however, pointed out that the delay in getting the necessary clearance for the proposal, mooted about 18 months ago, could have cost the corporation the equity share in the project, but added that the French company was ready to take IOC in the project.

IOC officials said that initially the RBI had given the permission for five years which could be revised at the end of the contract period.