It is believed the starting price for Yuganskneftegaz is US$8.65 billion.

“ONGC has discussed bidding for Yukos assets, though at a very preliminary level," said India’s petroleum secretary SC Tripathi.

"We have asked them to go ahead with bidding for the assets with some partner, either Russian or any other.”

But due to the high asking price, it is understood the Indian government is keen for ONGC to link with other oil majors like Gazprom to make a joint bid.

In an interview with Agence France-Presse, ONGC chairman Subir Raha said his firm was looking at Yukos’ oil assets. "If they de-merge and sell assets separately, then we will look to buy some assets of the company,” he said.