The consortium can face stiff competition from several global players who are vying for the 19.5 per cent stake on sale.

"Our companies are looking into the offer. They are mulling if they can take some of that equity," oil minister Dharmendra Pradhan told reporters here.

Russia was said to be looking to sell a 19.5 per cent stake in Rosneft, preferably to India and China, for an estimated $11 billion.

However, reports quoting Kremlin spokesperson Dmitry Peskov said, "There exist no preferred variants. Various options are now being discussed."

Investors from countries other than China and India have evinced interest in the privatisation of Rosneft, Russian economic development minister Alexei Ulyukayev said.

Up to 19.5 per cent of the company's shares are expected to be sold in the second half of this year, with Italian bank Intesa Sanpaolo acting as an investment consultant and US law firm White & Case as the legal consultant.

Rosneft produces more crude oil than Exxon Mobil Corp.

"OVL is the company heading the discussions now. Others may join later," Pradhan said.

Moscow is looking to cut its budget deficit through a stake sale in Rosneft preferably to a strategic partner than through a public share offering that will be more susceptible to political instability.

Rosneft, whose current market value is put at around $55 billion, is among the companies sanctioned by the US over Russia's involvement in Ukraine. BP plc of the UK had bought near 20 per cent in Rosneft in 2013, much before Russia got involved in Ukraine.

Last month, Rosneft completed the sale of a 15 per cent stake in Russia's second- largest oilfield Vankor to ONGC Videsh for $1.23 billion.

During Pradhan's visit to Moscow earlier this month, Rosneft signed an agreement to sell another 23.9 per cent in Vankor to a consortium of Oil India, Indian Oil Corporation and Bharat Petroleum Corporation for $2 billion. It has signed preliminary agreement to sell another 11 per cent in the same field to ONGC Videsh."When all these transactions close, Indian companies will have nearly 50 per cent stake in Vankor," Pradhan said.

Vankor field, located in East Siberia, is Russia's second largest field by production and accounts for around 4 per cent of Russian production. It currently produces about 422,000 barrels of oil per day. "The production India will get from the near 50 per cent stake in Vankor is equal of roughly half of ONGC's current domestic oil production," he said.

Pradhan, who earlier this month visited Moscow, said Russia was considering divestment in Rosneft and Indian companies would certainly evaluate the opportunity.