"The discussions are at a preliminary stage and it will take some timebefore a final decision is made," top sources said. Some of these effortscould be in the form of joint ventures and others as transfer of technology.BP Amoco is reportedly quite keen on an entry as India is a huge market whatwith deregulation of the oil sector due to happen two years down the line.

IOC believes that a lot can be done in key areas like HR which are inconstant need of improved practices to cope with changing employeerequirements. As for the retail network, BP Amoco's international expertisein marketing will come in handy as regards providing additional support forIOC's vast network of outlets.

According to experts, LNG has also been identified as an important focusarea given its enormous needs in the power sector during the next few years.IOC has already identified select regions in the south and east for LNGinfrastructure in collaboration with a global partner while participating inthe $700 million Dahej project with Petronet LNG. IOC and BP Amoco arealready in the process of preparing a detailed techno- feasibility report ona mega power project which will involve a product link from the middle eastto India. The Rs 4,000 crore venture has been planned with IOC and the GasAuthority of India holding 50 per cent of the equity and BP Amoco thebalance.

The project will involve setting up a plant in either Iran or Qatar whichwill convert natural gas sourced from a field into liquid. This will then betransported to a convenient coastal location in India from where it will becarried via liquid pipelines to power plants as processed dimethyl ether(DME). Sources say that DME will be the preferred fuel of the future as itis environment-friendly and relatively inexpensive.

IOC has kicked off the process of diversifying into a range of areas throughstrategic alliances with stronger counterparts both from here and abroad.The navratna's corporate vision describes it as evolving into "a major,diversified, transnational, integrated energy company." Tieups have beenforged with the Oil and Natural Gas Corporation for joint participation inE&P, refining & marketing, petrochemicals and power. IOC has also signedmemoranda of understanding with Premier Oil of the UK and Petronas ofMalaysia to participate in the blocks offered under the new explorationlicencing policy. Big names like Marubeni and Mitsubishi have been roped infor power projects as co-promoters.