* India's ONGC hires bank for stake in coveted oil asset
* Stake worth $3 bln-$5 bln
* Bids from international energy giants also expected (Adds background, details, quote)
By Joseph Chaney and Narayanan Somasundaram
HONG KONG/MUMBAI July 20 (Reuters) - India's leading oil producer ONGC has hired Citigroup to advise it on a bid for Kosmos Energy's stake in an oil field in Ghana in a deal that could be worth between $3 billion and $5 billion, sources familiar with the deal said.
Private equity-backed Kosmos, which has received a total of $800 million in financing from Blackstone and Warburg Pincus, has hired Standard Chartered and Barclays Plc to sell its stakes in the offshore Jubilee oil field.
A potential sale of Kosmos' stake in the Jubilee field is being closely watched as the asset is one of the largest oil finds in West Africa in the past decade.
"ONGC has been bidding for overseas blocks for almost a decade," said Kumar Manish, an associate director at KPMG.
"To me, in terms of risk, Ghana is better than some of the other countries that have huge oil reserves," he added. "India being a big ticket oil importer needs to secure supplies and has to go to countries that have reserves."
All three sources declined to be identified because they were not authorised to speak publicly about the matter.
Citigroup declined to comment when contacted by Reuters. ONGC representatives were not immediately available for comment.
ONGC is not Asia's only bidder for Kosmos's coveted stake. China's top offshore oil and gas producer, CNOOC Ltd, has hired Goldman Sachs to advise it on its bid for the stake, a source told Reuters last month.
Other bidders could include global energy players BP Plc, Shell Oil, Exxon Mobil Corp and Italy's ENI SpA, analysts and dealmakers say.
Texas-based Kosmos has interests across Ghana, Benin, Cameroon, Morocco and Nigeria, including the Jubilee Field in Ghana's deep waters.
DEADLINE EXTENSION
On Friday, the bid deadline for the Jubilee stake was extended and another date will be announced within the next 30 days, two sources familiar with the matter said.
The deadline extension gives bidders extra time to digest major developments earlier this month. Kosmos recently secured a $750 million loan facility to fund development of the discoveries. It also gained approval from the Ghanaian government for a phase-one plan of development for the field.
Any bid would need to be vetted by the Ghanaian government, and the extension allows the Ghanaian government to be more involved in the auction before a winner is picked.
Moreover, Ghana's National Petroleum Corp (GNPC) is also interested in buying the stake.
"The government has indicated and has informed the partners that should Kosmos want to sell, the Ghana National Petroleum Corporation would be interested in buying," Kwabena Donkor, Ghana's deputy energy minister, told Reuters on the sidelines of an African energy conference in early July.
Jubilee is predicted to hold 1.2 billion barrels of oil equivalent. The entire field is valued at around $15 billion.
Kosmos's partners in Jubilee include London-listed Tullow Oil plc and U.S. oil producer Anadarko Petroleum Corp.
One source said the Indian giant is looking to partner with an international oil firm in its bid for the stake. (Editing by Lincoln Feast)