The Hindu : Business : RIL faces hurdles in Baghdad oil blocks

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Friday, Nov 16, 2007
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RIL faces hurdles in Baghdad oil blocks

RIYADH: Iraq on Thursday threatened to blacklist India’s Reliance Industries (RIL) from future oil contracts after the company struck a deal with the Kurdish Regional Government for two blocks without Baghdad’s approval.

“Our position is very clear. Any company that signs contracts with the Kurdish Regional Government without approval of the Central Government, they will compromise chances of getting future opportunities in Iraq,” its Oil Minister Hussain Al-Shahristani told reporters here.He was here to attend the OPEC ministerial meeting. Reliance Industries had last week signed the contract for the blocks Rovi and Sarta in northern Iraq with the autonomous Kurdish Regional Government (KRG).

The blocks, measuring 517 and 607 sq. km., respectively, have almost 80 per cent oil bearing structure.

Reliance is confident of making a discovery soon. RIL paid a signing amount of USD 15.5-17.5 million for the blocks. — PTI

Our Mumbai Correspondent writes:

RIL’s stand

Reliance Industries on Thursday said stated that it had signed the agreements to acquire oil fields in the Kurdish Region in northern Iraq within the legal framework.

“Reliance has always maintained the highest cordial relationship with the Government of Iraq and all other stakeholders in the countries where we operate. We will continue to do so in future,” RIL said.

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