India's state-owned oil company is not facing cash flow problems yet and is still looking for acquisition opportunities despite the global financial crisis and the drop-off in prices it helped precipitate, the firm's chief said on Saturday.

"As a national oil company liquidity is not a problem but the whole business is certainly facing difficulties." Oil and Natural Gas Corp Chairman R.S. Sharma told reporters on the sidelines of a national oil company forum in Beijing.

"It is a good time to buy assets if you have the money," he said, adding that ONGC was looking at possible acquisitions in Africa and Latin America.

Like other executives at the forum Sharma dismissed the current price decline as a blip in a long-term trend of rising consumption.

"I don't see that there is falling demand. Its just a short term phenomenon, just a question of sentiment going down."

The national oil companies have warned that $60 crude could actually fuel another spike in prices further down the line if it leads to a suspension of more expensive projects needed to meet expected demand growth.