State-owned ONGC Videsh Ltd (OVL) and global steel major L.N. Mittal Group are competing against Chinese firms for takeover of the Canadian company PetroKazakhstan with operations in oil rich Kazakhstan.

Though the OVL's proposed joint venture with Mittal Group, ONGC Mittal Energy (OME) Ltd, is still to be incorporated, the two companies have nonetheless joined hands to bid for what could be India's first major acquisition in Central Asia.

"We have submitted the bid for acquiring PetroKazakhstan jointly with the Mittal Group," official sources told.

"We could not submit the bid through ONGC Mittal Energy as the company is yet to be incorporated," sources said.

Early reports received by Indian bidders indicate that they may be better placed with a bid in the range of $3.4-3.6 billion as against the reported $3.2 billion from China National Petroleum Corporation (CNPC) jointly with PetroChina.

Declining to give any details, the sources said the main contenders for the Canadian company are the Indian and Chinese.

One of the largest foreign energy companies operating in Kazakhstan, PetroKhazakhstan accounts for about 12 percent of oil production in the country.

Mittal Group's large steel operations in Kazakhstan has given the Indian bidders hope of winning this round against Chinese companies, which already have a presence in the Caspian Sea region.