NEW DELHI -- The Indian government has given the go ahead to state-run oil firm ONGC for the joint acquisition of a U.S. oil firm in Colombia along with China's largest oil company, a report said.

Oil and Natural Gas Corporation's overseas acquisition arm, ONGC Videsh Limited (OVL), has been looking to acquire U.S. oil firm Ominex De Columbia jointly with the China National Petroleum Corporation (CNPC).

"The Cabinet Committee of Economic Affairs has permitted OVL to go ahead with the acquisition," India's Press Trust of India news agency quoted Finance Minister P Chidambaram as saying. He said OVL would fund the acquisition either from its own resources or with that of its parent company, ONGC.

PTI, however, quoted unidentified sources as saying that OVL had submitted a joint winning bid with CNPC.

Omimex de Columbia has onshore producing and exploration blocks in Columbia, with net proven reserves of around 157 million barrels.

OVL is seeking Omimex's onshore oil block which produces 20,000 barrels per day, it said. Omimex de Colombia is fully owned by Omimex Resources, an American oil and gas exploration and production company.

Asian giants and economic rivals, India and China have been co-operating in securing energy assets in third countries to fuel their runaway economic growths.

In December Indian and Chinese energy firms joined hands to buy Petro-Canada's 37-pc stake in Syrian oil fields for $573 million.

In January the two rising economic giants formalized their co-operation by signing an agreement to formulate a joint strategy to secure global energy assets.