Close on the heels of Indian Oil Corporation, state-run oil majorOil and Natural Gas Corporation is planning to bid for taking over petrol stations in Sri Lanka, and begin retailing fuel imported from its subsidiary Mangalore Refineries and Petrochemicals Ltd.

Sri Lanka had earlier this week invited expressions of interest from oil companies to sell state-run Ceylon Petroleum Corp's (Ceypetco) 100 petrol stations.

"We are examining the offer closely, and a decision would be taken after evaluating business prospects," official sources said on Wednesday.

ONGC has secured licence to set up 1,100 petrol stations in India, and the first outlet is likely to come up by the year-end.

"It makes a lot of business sense. We are setting up petrol stations afresh in India, and here (in Sri Lanka) is an opportunity to acquire ready infrastructure," officials said.

Another reason for ONGC looking at Sri Lanka, which imports all its crude and petroleum requirement, is the fact that India is surplus in refining capacity and companies regularly look at overseas markets.