Kurdish government trims RIL's stake in northern Iraq oil blocks: report

Reliance Industries will now own a reduced 800-per cent stake in the northern Iraq oil field with the Kurdistan Regional Government (KRG) assigning 20-per cent stake in the block to Austria's OMV Petroleum Exploration GmbH.

Reports said the Kurdisah Regional Government has assigned a 20-per cent third-party participating interest each in the Rovi and Sarta blocks to OVM.

With the Kurdish Regional Government providing for 15-per cent stake in the oil blocks tom a local Kurdish oil firm, RIL's effective interest in the two blocks stands reduced to 65 per cent, the report said.

Reliance acquired participating interest in the Rovi and Sarta onland blocks in northern Iraq in 2007 for around $15.5-17.5 million.

The two blocks, covering an area of 517 and 607 sq km, respectively, are estimated to hold around a billion barrels of oil reserves and it is not clear whether Reliance has consented to the stake transfer, the report said.

The blocks have nearly 80 per cent oil-bearing structure and the Kurdish authorities might have sold the stake to OVM for a premium, it added.