Iraq threatens to bar RIL; done nothing wrong: RIL

Iraq today threatened to blacklist Reliance Industries (RIL) from future oil contracts in the country after the company struck a deal with the Kurdish regional government for two blocks without Baghdad's approval, but Reliance said the agreement conformed to law.

"Our position is very clear. Any company that signs contracts with the Kurdish regional government without approval of the central government will compromise chances of getting future opportunities in Iraq," Iraqi Oil Minister Hussain Al-Shahristani told reporters in Riyadh.

Hussain, who is in Riyadh to attend the OPEC ministerial meeting ahead of the summit-level talks among member countries, said Baghdad had "conveyed this to all the companies that have recently signed production sharing contracts...That has also been conveyed to Reliance Industries."

RIL had signed the contract for blocks Rovi and Sarta in northern Iraq with the autonomous Kurdish regional government last week. The blocks, measuring 517 and 607 sq. km, respectively, have almost 80% oil bearing structure.

Reliance is confident of making a discovery soon, and paid a signing amount of $15.5-17.5 million for the blocks.

"Reliance has always maintained the highest cordial relationship with the government of Iraq and all other stakeholders in the countries where we operate. We will continue to do so in future," RIL said in a statement.

Asked about the consequences if companies go ahead and sign the contract, the minister said: "Iraq will not allow its oil to be exported without federal government approval. We have informed and warned the companies of the consequences. They will not be able to take oil out of the country."

(Reporting by Ammar Zaidi)