ONGC's overseas subsidiary ONGC Videsh (OVL) has sought to form a joint venture with two other partners for production of crude from Tuba oil field in case it got all necessary clearances from the government in the wake of UN sanctions against Iraq.

OVL and Reliance would hold 30 per cent each in the project, while Sonatrach would take the remaining 40 per cent in the project, OVL managing director Atul Chandra told PTI.

OVL would invest over $200 million in the project which is expected to cost over $500- $600 million and has been given a security of crude supply for a period of 20-25 years.

The OVL-Reliance combine has already chalked out the financial and technical modalities and a draft contract is under discussion with the officials of Sonatrach, Mr Chandra said, adding, Iraq National Oil Company (INOC) would also be involved with the project at a later stage.

Incidentally, Indonesian National oil company, Pertamina, which is also interested in taking up development of Tuba, is also keen to join the OVL consortium for the bid.

(PTI)