Osaka (Bloomberg): India expects to cut as many as 5,600 jobs at state-run Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation Limited (BPCL) to boost efficiency as it opens the country's oil market to competition.

India plans to reduce workers at ONGC, India's biggest oil producer, by as much as 5,000 from 38,000, Petroleum Minister Ram Naik said.

BPCL will shed as many as 600 of its 11,000 workers, he said.

"This will help both the companies to become competitive and more streamlined in their operations," Naik said.

The Cabinet had earlier this week decided to postpone Voluntary Retirement Scheme (VRS) for the two PSUs.

The two companies will now re-submit improved VRS proposals.

Naik said the government expects to make a decision on the sale of the state-owned refiners Hindustan Petroleum and BPCL in the next three months.

The Cabinet Committee on Disinvestment (CCD) had earlier this month postponed privatisation decision on BPCL and HPCL due to lack of consensus among the Cabinet ministers.

Naik said the government expects to sign an agreement to invest $ 750 million in an oil field in Sudan that will give India an additional 3 million tons of oil a year.

"It is in the final stages, we'll sign an agreement as soon as the formalities are over," he said.

The government is also in talks with Iraq, Iran and Myanmar to secure stakes in oil and gas fields, Naik said.

PTI