Chevron buys Reliance’s 80 pc stake in two blocks in Kurdistan

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New Delhi, Jul 19 (PTI) US oil behemoth Chevron Corp today said it has bought Reliance Industries’ 80 per cent stake in two oil blocks in Kurdistan region of Iraq for an undisclosed amount. RIL’s exit from Rovi and Sarta onland blocks in northern Iraq is part of the company’s overseas asset restructuring wherein it is cutting exposure in exploration blocks to focus on producing properties. The company had in 2007 paid a signing amount of USD 15.5-17.5 million to autonomous Kurdish Regional Government (KRG) for the two blocks that were believed to hold one billion barrels of oil reserves. RIL may have got about USD 200 million from Chevron from the stake sale. In a statement, Chevron said its subsidiaries have completed a transaction to acquire interests in two blocks. “Chevron will acquire Reliance Exploration & Production DMCC’s 80 per cent interest and operatorship of the production sharing contracts (PSCs) covering the Rovi and Sarta blocks. The blocks are located north of Erbil and cover a combined area of approximately 490 square miles (1,124 square kilometres),” it said. Austria’s OMV AG holds the remaining 20 per cent interest in the two blocks.

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