Ahead of his two-day high profile visit to China, Petroleum Minister Mani Shankar Aiyar said on Tuesday that there is a need for joint bids for the energy hungry Asian neighbours in foreign oil fields.

He also said that the competition between two of Asia’s largest oil consumers had made assets more costly and helped western companies to sell ageing oilfields at a premium.

India has named 2006 as the “friendship year ” with China and has a “high level of confidence” that Beijing would co-operate on joint acquisition of oil and gas fields overseas.