ONGC's has operations in Iraq, Iran, Libya and Syria

India's largest oil and gas exploration company has said it is hopeful of keeping Iraqi oil exploration rights granted under Saddam Hussein's regime.

Oil and Natural Gas Corporation (ONGC) also said it was in talks with other oil firms to expand its oil exploration contracts in Iraq and expects to increase its investment there.

ONGC says that its contract to drill on the 10,000 square kilometre Block Number 8 was ratified by the previous Iraqi parliament.

"This contract is now being reviewed and we are hopeful that this contract will stay with us," said Atul Chandra, CEO and managing director of ONGC Videsh, the subsidiary which operates the Iraqi drilling rights.

High hopes

"A decision on this is expected to be taken within a month," Mr Chandra told the BBC.

He believes output from the Iraqi field to equal, and possibly outstrip, oil production from the entire western Indian state of Gurajat.

"We expect the field to produce between five to six billion tonnes of oil," Mr Chandra said.

ONGC was willing to invest "anywhere between $1bn and $2bn" in its Iraq operations if talks to acquire more exploration rights there were successful, he said.

"We already have one block and we are talking to other oil companies", he said.

Mr Chandra declined to name any of those oil companies, merely saying "the discussions are on".

Meanwhile, parent firm ONGC Group is planning to enter the retail market in India this year.

ONGC Group Chairman and Managing Director Subir Raha said the company was planning to open 1,000 petrol stations across India during the next four to five years.