The state-run Oil and Natural Gas Corporation is likely to buy a stake in Bharat Petroleum Corporation's 6 million tonne Bina Refinery.

The Oil and Natural Gas Corporation has signed a cooperation agreement with Bharat Petroleum Corporation envisaging the upstream giant offering BPCL stake in oil exploration and production in exchange of BPCL giving it downstream opportunities.

"BPCL is offering to us sustained incremental production to fuel our upcoming petrol pumps. We will explore other downstream areas of cooperation," ONGC Chairman Subir Raha said on Monday in New Delhi.

Though Raha did not give details of the downstream collaboration ONGC was looking at, company sources said picking stake in the Rs 6,500 crore (Rs 65 billion) Bina Refinery was under consideration.

BPCL, which has announced its intentions to enter oil exploration and production, is looking for partners for the much-delayed Bina Refinery project that was scheduled for commissioning in 2005.