New Delhi: India, whose biggest ever investment abroad in the gigantic Sakhalin-I oil field of Russia begins production from 2006, is eyeing acquisition of more oil fields in the former Communist nation, Petroleum Minister Mani Shankar Aiyar said today (Oct 26, 2004).

"It is now time for India's participation in Russia to expand beyond Sakhalin-I. We have signalled our interest in taking stake in Sakhalin-3, Severnaya Neft, Vankor, Prirazlomnoye and other fields," Aiyar said in a tele-conference from Moscow, where he met the Russian Energy Minister.

India, which is acquiring oil fields overseas to cut its dependence on imported crude oil, also expressed interest in taking over Russian oil firm Yuganskneftegaz, which owns large oil and gas fields in Russia.

"We have been told that some legislative work still needs to be done before the company can be put for auction. We have proposed that the national oil companies of the two countries can bid together as and when that happens," he said.

India's ONGC (Oil and Natural Gas Corporation) Videsh Ltd has a 20 per cent stake in the Sakhalin-I oil and gas field. The field would start producing 100-200 million cubic metres per day of natural gas from third quarter of 2005.

Crude oil production from the offshore fields will also commence from January 2006 with initial production of 50,000 barrels per day. This will rise to 250,000 barrels by the first quarter of 2007.

India, which will sell its 20 per cent share in the gas production locally, is looking at shipping its share of crude oil from the fields, Aiyar said.