This was disclosed by chairman of the Shell Transport and Trading Co and managing director of the Royal Dutch/Shell group of companies Mark Moody Stuart in an interview to Shell In The Middle East magazine during a recent visit to the UAE.

Stuart, who will head Shell's worldwide operations from July 1 said, the venture with a company to be identified by the Indian government, will form a new world class firm active in refining, distribution, marketing and consumer services.

``Shell and Saudi Aramco have been looking at Asia for some time together for Asia. This is our first move abroad and we are moving together into Asia. India is our first target,'' said Juma'ah, according to excerpts of the interview published in The Gulf News English daily.

The new firm aims at capturing at least 20 to 25 per cent ofIndia's petro products market and securing crude supplies from Saudi Aramco to the Indian oil industry, he said.

He said the equity structure of the company will be a 25 per cent stake each for Saudi Aramco and Shell with the remaining 50 per cent offered to the chosen oil company or group of firms.

The proposal was forwarded last November to the Indian government by Abdullah Juma'ah, president and chief executive officer, Saudi Aramco and Stuart.

``In a deregulatory environment, we believe this proposal will contribute technology investment and energy security, leading to a globally competitive oil industry which will work for benefit of the Indian consumer,'' Stuart and Juma'ah said in a joint statement released here.

India represents one of the world's potentially exciting markets, they said and referred to the previous United Front government's framework on oil sector deregulation in this context. ``We believe that our proposal fits absolutes into that timetable,'' he said.

Both Saudi Aramco andShell have existing partnerships in India. Saudi Aramco has a tie-up with Hindustan Petroleum Corporation while Shell has with Bharat Petroleum Corp.

Saudi is a major supplier of crude oil to Indian refineries supplying some 60,000 barrels of crude per day while Shell is in lubricants and LPG. Shell is also in the process of developing exploration and production initiatives such as onshore prospects in Rajasthan. It is also taking part in the Indian liquid natural gas-to-power development plans, the report added.