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| RIL's Kurd deals illegal, says Iraq | |
| Press Trust Of India / New Delhi November 22, 2008, 0:41 IST | |
Iraq has dubbed as "illegal" the contracts signed by Reliance Industries' for two oil blocks in Kurdistan saying companies signing oil deals with the Kurdistan Regional Government (KRG) cannot bid for lucrative oilfields contracts in Iraq.
A year after Reliance signed contracts for the Rovi and Sarta oil blocks in northern Iraq with the autonomous KRG, Iraqi Oil Minister Hussain Al-Shahristani said any oil produced and taken away without approval of the central government was tantamount to "smuggling" and will be dealt with accordingly.
"The contracts that were signed by KRG were in violation of the current laws and in violation of the draft hydrocarbons (law)...Therefore, we have announced that those contracts are not standing with Iraq," he said in an interview to oil cartel Organisation of Petroleum Exporting Countries' (Opec) official monthly bulletin.
Iraq is a member of Opec but its oil output is not included in the cartel's production quotas. "Foreign companies have no right to work on the Iraqi territory without the approval of the central authority and they deal with the consequences of their actions," he warned, but did not say if Baghdad has blacklisted the firms.
"Any oil produced in Iraq or taken out of the country without the approval of the central government is considered smuggling and will be dealt with as such," he said.
Iraq, with the world's second-largest proven oil reserves, already announced first round of bidding for oilfields that has seen immense interest by global energy giants.
ONGC Videsh is among the companies shortlisted but Reliance does not figure in the list. A second bid round is likely to be announced before the end of the year.
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