State-run Oil and Natural Gas Corporation is likely to bid for acquiring the assets of embattled Russian oil major Yukos, petroleum secretary S C Tripathi said on Thursday.
"They (ONGC) have discussed bidding for Yukos assets at a very preliminary level. It is a good idea and we have asked them to go ahead," Tripathi told reporters in New Delhi.
Russia is putting up on auction Yukos' main oil producing unit, Yuganskneftegaz, and has set $8.65 billion as the starting price for the auction, which will take place on December 19.
Tripathi said ONGC may, in all probability, look at tying up with foreign firms like Gazprom of Russia due to the huge amount of cash involved in the deal.
ONGC chairman Subir Raha said the company was looking at acquiring individual assets (oil or gas fields) of Yukos but acquiring a subsidiary company of the Russian giant was not possible.
"There are issues of management and the financial implications," he said.
Russia is auctioning the Yukos subsidiary to recover a tax debt of $18.5 billion.
Yugansk produces one million barrels of oil per day or over 60 per cent of Yukos output.
Raha said OVL had offers from around the globe for taking stakes in oil assets and buying out companies.