Mumbai: State-run explorer Oil and Natural Gas Corporation (ONGC) is planning to build a $20 billion war chest for major oil and gas property acquisitions overseas, The Financial Express reported, quoting its chairman.

ONGC is expected to finalise agreements in Turkmenistan, Iran, Latin America and West Africa, the paper quoted RS Sharma as saying.

"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," the paper cited him as saying.

ONGC had cash surpluses of around $4 billion and could raise $10 billion more in a short time, so it could put together $20 billion within six months, he said.

ONGC-Mittal Energy joint venture this week won an exploration block in Trinidad and Tobago with estimated gas reserves of 2 trillion cubic feet.

ONGC Videsh, ONGC's overseas arm that 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.

OVL will also take a 40 per cent stake in the San Cristobal oilfield in Venezuela.

OVL will make a total investment of about $355 million. Venezuelan national oil company, Petroleos de Venezuela (PDVSA), will hold the remaining 60 per cent.

The San Cristobal field is currently producing about 24,000 barrels of oil per day.

Recoverable reserves in the project area have been estimated by a joint team of ONGC and PDVSA at 232 million barrels that can yield up to 100,000 barrels of oil per day.