Reliance Industries to explore investment opportunities in Iraqi oil fields

Mumbai: Reliance Industries, the country's largest privately owned company, is exploring investment opportunities in the oil and gas fields of Iraq, chairman Mukesh Ambani said. The move comes exactly a year after the company divested its holding in two blocks in Kurdistan amid threats of blacklisting by the war-torn country.

"Petroleum minister Veerappa Moily has asked us to consider investing in Iraq," Ambani said on the sidelines of a programme in Mumbai on Wednesday, which was attended by Iraq's deputy prime minister Hussain Saleh al-Shahristani. "We are looking at the Nasiriya giant oilfield and three other oil and gas blocks in the Middle Furat region," Ambani said.

He, however, stressed that Reliance was only evaluating the possibilities and that no decision has yet been taken.

"We are keenly looking at Iraq's resources...we have not yet decided on investing in the Nasiriya giant oil field and the accompanying refinery project but all options are being evaluated," Ambani said.

In March, Iraq had shortlisted Reliance IndustriesBSE -2.54 % and six other global energy firms for developing the Nasiriya oilfield and building an associated 300,000 barrels per day refinery.

"We are glad that companies like Reliance Industries are taking a keen interest in Iraq, the bidding process for these blocks has started and we hope to close it soon," Shahristani said. After beating sanction-hit Iran to become the second-largest crude oil supplier to India, Iraq is suddenly shining bright on the Indian energy radar. Petroleum minister M Veerappa Moily, who visited Iraq last month, came back with a bagful of Iraqi offers to invest in local oil and gas acreages.

On top of the list were three discovered oil blocks — Kifil, West Kifil and Merjan — in the Middle Furat oilfields, which Iraq offered to Indian energy companies on a nomination basis, which means there will be no bidding for these blocks. This is the first instance in the recent past that an oil-rich Middle East nation has offered oilfields to India without mandating a formal bidding process.

Ambani said that his company is interested in Iraq's resources. "We are interested in Iraq's resources as we are the world over, but we remain India focused as 90% of our energy needs are imported," he said.

In 2007, Reliance Industries' Dubai-based arm, Reliance Exploration and Production, had acquired 100% stake in Rovi and Sarta blocks of Kurdistan. But the then Iraqi government did not appreciate the award of contract to Reliance by the autonomous Kurdistan region and threatened to blacklist the company.

In July last year, Reliance sold its entire holding in the two blocks to Chevron. "We have divested all our assets in Kurdistan," Ambani said.