RIL's stake in Iraq oil block reduces to 80 per cent

Date: 01-06-2010

Reliance Industries' holding in northern Iraq oil block has been reduced to 80 per cent after the Kurdistan Regional Government assigned 20 per cent stake in the block to Austria's OMV Petroleum Exploration Gmbh.

Rovi and Sarta onland blocks in northern Iraq may hold one billion barrels of oil reserves. In 2007 Reliance had paid a signing amount of USD 15.5-17.5 million (rpt) million to autonomous Kurdish Regional Government (KRG) for the two.

The blocks have almost 80 per cent oil bearing structure and Reliance was confident of making a discovery soon. The Rovi and Sarta blocks are encompassing an area of 517 and 607 sq km, respectively, and are estimated to hold around one billion barrels of oil reserves. Reliance had planned to drill four wells in these blocks to a target depth of 4,500 metres. crack crack