India ONGC may raise $20 bln for foreign buys-paper

MUMBAI, Dec 27 (Reuters) - Indian state-run explorer Oil and Natural Gas Corp (ONGC.BO) could build a warchest of $20 billion to buy stakes in major oil and gas properties overseas, the Financial Express reported on Thursday, citing its chairman.

The company expected to finalise agreements in Turkmenistan, Iran, Latin America and West Africa, R.S. Sharma told the paper. "ONGC has the appetite and the ability to fund its acquisition plans," Sharma told the paper.

"I would like to fund such acquisitions by way of borrowed funds. However, if I have my own funds, I would first like to use them instead of borrowing," he was cited as saying.

ONGC had cash surpluses of around $4 billion and could "immediately raise" a further $10 billion, so it could put together $20 billion within six months, he told the paper.

ONGC's joint venture with Mittal Energy this week beat UK's Centrica Plc (CNA.L) to win an exploration block in Trinidad and Tobago with estimated gas reserves of 2 trillion cubic feet, the paper said.

An ONGC spokesman said nothing had been finalised yet.

ONGC Videsh, ONGC's overseas arm which is present in 29 foreign oil and gas projects, is spearheading India's quest for securing energy security through overseas stakes.

It recently won two exploration blocks in Brazil and is teaming up with the Hinduja Group in a bid to develop oil and gas assets in Iran.

ONGC said earlier this week it would spend $696 million in upgrading pipelines and in capex for offshore fields. (Reporting by Rina Chandran; Editing by John Mair)