In a bid to accelerate the divestment process in public sector oil companies, the government is understood to have decided to circulate draft transaction documents for Hindustan Petroleum Corporation amongst prospective buyers, in July.

The draft shareholders agreement would be preceded by an information memorandum, which the government is likely to give to bidders by the end of this month.

"The confidential information memorandum would also be ready by the end of this month or by mid next month," sources said.

The divestment of HPCL had generated substantial interest when the Centre invited Expressions of Interest earlier this year.

Seven companies including global majors like Royal Dutch/Shell, BP Amoco, Kuwait Petroleum Corporation, Saudi Aramco and Chevron Texaco are in the fray for HPCL.

Indian companies, which submitted initial bids for management control of HPCL included Reliance Industries and the Essar Group.

Core Group of Secretaries on Divestment is expected to meet soon to recommend the global advisor for the divestment of Bharat Petroleum Corporation.