Oil and Natural Gas Corp, the state-owned Indian energy group, has confirmed that it is in talks aimed at acquiring a stake in Yuganskneftegaz, the giant Russian oil plant that was formerly the prize asset of Yukos.

"We're in touch with the concerned Russian entities about the Yukos assets and other opportunities in Russia," the ONGC chairman, Subir Raha, said.

Mr Raha's comments followed a report in the Indian Business Standard newspaper that ONGC had sought permission from the Indian Government to acquire a 15 per cent stake in Yugansk for around $2 billion.

Mani Shankar Aiyar, the Indian oil minister, also suggested that ONGC was interested in buying a stake in Yugansk, which pumps 1 million barrels of oil a day and accounted for 60 per cent of Yukos's total production.

"It would make great sense for us to build on that," Mr Aiyar told Reuters, referring to recent talks between Russian and Indian officials. Russia's President Vladimir Putin visited New Delhi last month

If successful, the deal would mark a major step-up in ONGC's overseas programme. The company already has a 20 per cent holding in Sakhalin–1, the giant oil field off Russia's Pacific coast. ONGC's $2.77 billion investment in the Sakhalin field is the single largest foreign investment by India in any overseas venture, according to the company.

However, Mr Raha did not mention Rosneft, the company that presently controls Yugansk. Rosneft took control of the plant after buying Baikalfinansgroup, the newly-formed private company that successfully bought the plant for $9.4 billion at last month's controversial Kremlin-directed auction.

Following Rosneft's assumption of control at the plant Russia's energy minister said earlier this month that Yugansk would be spun off into a new state company and that Rosneft would complete a planned merger with Gazprom, Russia's largest energy company.

Viktor Khristenko added that up to 20 per cent of the shares in Yugansk could be sold to China National Petroleum Corp, the Chinese state-owned oil company. Such a move would frustrate efforts by Yukos and its investors to halt or reverse the sale of Yugansk, but officials at CNPC have since denied knowledge of the plan.

Yukos's directors pledged to launch a lawsuit against Rosneft to seek damages of at least $20 billion (£10.3 billion). Yukos said that it would "pursue every legal means" to oppose the Yugansk sale. It promised to advertise inside and outside Russia of its intentions to sue.

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