MUMBAI: Videocon Industries has firmed up plans to bid for oil blocks in Kurdistan - governed by the Kurdistan Regional Government - even though global oil majors have been shying away from bidding for oil assets in the region.

Iraq, which has a dispute with the regional government over royalty sharing issues, bars firms that bid in Kurdistan without seeking its approval.

"We are going to bid for oil blocks in Kurdistan. It has a regional autonomous government there," Saurabh Dhoot, director on the board of Videocon Industries and nephew of Videocon Industries chairman V N Dhoot, told TOI. Saurabh oversees the oil business at Videocon Industries.

Asked if Videocon would bid solo or through a consortium partner, V N Dhoot said, "BPCL is our natural partners... We will offer them to be our partners in KRG as well."

Videocon will be second Indian firm after RIL to bid for oil blocks in Kurdistan with reserves of 45 billion barrels, sixth largest in the world. Iraq has banned RIL, which owns two exploration blocks in Kurdistan, from bidding for its oil blocks.

"Some of the oil firms are keener on bidding for oil assets in Kurdistan than Iraq because the Kurdish contracts offer better terms than those offered by Baghdad," said an oil analyst.

However, state-owned ONGC has shied away from bidding in Kurdistan to avoid offending Baghdad. ONGC's overseas arm OVL has been selected as a qualified bidder for oil blocks in Iraq.

Shares of Videocon Industries gained 1% to close at Rs 181 in a firm Mumbai market on Tuesday.

Videocon is also learnt to have received a surprise $3 billion unsolicited offer for its 10% prized stake in the gigantic gas filed in Mozambique in which its junior partner Cove Energy, which has put itself on the block, holds 8.5%. Global oil major Royal Dutch Shell and Thai state-owned oil firm PTTEP have bid for Cove Energy, while India's ONGC and GAIL have expressed desire in participating in the bids.

Without confirming or denying the offer, Dhoot said, "If our 10% stake is getting valued at $3 billion now, it will fetch me over $7 billion in just three years time when it starts producing so we are not exiting at this point of time."