Four domestic oil companies Gail, BPCL, and private sector Videocon Industries in consortium with Australia's Oilex NL has bid for two blocks in Oman.

The consortium has bid for onshore blocks 56 and 58 located off South Oman salt basin. Gail, Oilex and Videocon is expected to hold 25 per cent interest each in the block after the acquisition, while BPCL and HPCL will have 12.5 per cent each.

The consortium's bid amount of $50 million included a signature bonus as demanded by the Oman government. As per the bidding rules, in case of a tie between two or more bidders, the Oman government will offer the block to the party which has offered a higher signature bonus. The government has also reserved rights for picking up 20 per cent stake in any block.

In January 2006, Oman's oil and gas ministry had sought bids from interested parties for five of its onshore exploration blocks-54, 55 and 56 in the eastern Flank area and 57, 58 located in the Western Margin region of the country.