RIL to explore oil and gas in Kurdistan

Reliance Industries (RIL) said it has entered into two production sharing contracts (PSCs) with the Kurdistan Regional Government (KRG) to explore oil and gas in the Kurdistan region of Iraq.

RIL has committed about Rs 15 million in exploring the region, in blocks measuring an area of 450-500 square kilometres in the Rovi and Sarta blocks in the Kurdistan.

It was the first time an Indian oil and exploration company was entering into war-ravaged Kurdistan and RIL was among the seven explorers in the region, said sources.

Under the terms of the contract, Reliance Exploration and Production DMCC, a wholly-owned subsidiary of RIL, would serve as the operator, said an RIL release.

"We are pleased to reach an agreement with the KRG on these two PSCs. We hope and believe this will be an investment that will provide long-term benefits to all the stakeholders," said Atul Chandra, the president of international operations, RIL.

Sources said RIL had established a local office in Erbil in Kurdistan in 2006 and undertaken extensive geological work over the past year in the Kurdistan region.

RIL has been actively pursuing petroleum exploration activities in West Asia, particularly in Oman and Yemen, besides India, the Asia Pacific Region and South America. RIL is currently developing the largest gas field in the Krishna Godawari basin.

The company has so far made gas and oil discoveries in the KG basin, the Gujarat coast and the Krishna basin.