New Delhi, Dec 06: State-run Oil and Natural Gas Corporation (ONGC) today said it would bid for oil refiners Hindustan Petroleum and Bharat Petroleum if government policy permits one PSU bidding for another. ONGC chairman and managing director Subir Raha said the exploration firm would certainly be interested in either of the PSUs to become a fully integrated oil firm.
"With acquisition (of BPCL or HPCL) we can go into transport fuel marketing without a long gestation period and against potential competitors who pose a formidable entry barrier," Raha told. His statement comes within a day of an informal meeting of senior Cabinet ministers at which the row over divestment of two oil PSUs was resolved.

Though it is not clear what decision the meeting chaired by prime minister Atal Bihari Vajpayee took, it is widely believed that the ministers, including Deputy Prime Minister L K Advani, Defence Minister George Fernandes, Disinvestment Minister Arun Shourie and Petroleum Minister Ram Naik have cleared strategic sale of government shareholding in HPCL while opting for a public offering of state's share in BPCL.

Raha said it remained to be seen if government would allow PSUs to bid, contrary to the stand of disinvestment ministry of barring all state-run firms from the process. "If allowed, we would certainly be interested," he said.
ONGC, which produces close to 24 million tonnes of crude oil annually, has begin the process of vertical integration with the acquisition of Aditya Birla group stake in loss-making Mangalore Refinery & Petrochemicals Ltd (MRPL). Bureau Report