Government-backed ONGC is considering selling stakes in some of its deep-water blocks to energy giant Royal Dutch Shell, ONGC Chairman & Managing Director Sudhir Vasudeva revealed on Friday.

Selling of stakes to Shell is being considered as part of a strategy to hit a broad partnership with the global energy giant. The discussions are, however, currently at a very preliminary stage.

Speaking on the sidelines of an even organized by the Bengal Chamber of Commerce, Mr. Vasudeva said, "We are considering selling stake of some of our deep water blocks to Shell. Discussions are going on but it is at a very preliminary stage."

ONGC wants to acquire technology from Shell, which is a world leader in operating deep-water blocks.

ONGC, currently, owns a total of 56 deep-water blocks.

It is interesting to note here that ONGC and Oil India Ltd (OIL) are competing with Shell in the race to acquire 20 per cent stake in the Rovuma-1 offshore block of Mozambique. Each of Andarko Petroleum and Videocon Industries are offering 10 per cent stakes in the block.

Meanwhile, ONGC is drawing plans to explore shale gas in India to meet soaring demand for energy. The government is expected to put shale gas blocks for auction by the end of current financial year.