Monthly Archives: July 2012

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

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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Attack threatens Iraq oil supply

Firefighters in southeast Turkey have put out a fire on a pipeline carrying about a quarter of Iraq’s oil exports, but it is unclear when oil will resume flowing, security sources say.

They blamed sabotage by Kurdish separatists for the explosion on the Kirkuk-Ceyhan pipeline.

The fire broke out at 11 p.m. (2100 GMT) on Friday near the town of Midyat in Mardin province, near the Syrian border.

Officials blamed the attack on the Kurdistan Workers Party (PKK), a Kurdish separatist group that has claimed responsibility for past attacks on the 960-km (600-mile) pipeline.

Firat News, a website with ties to the PKK, also said the outlawed group was behind the attack.

Insurgents in Iraq have in the past disrupted the transport of oil on the pipeline, the country’s largest, and technical faults on the 35-year-old link, which consists of two pipes, have also cut flows.

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