U.S. oil giant Chevron Corporation, on Thursday, announced that it had bought 80 per cent stake in Reliance Industries Limited’s (RIL’s) two oil blocks in Kurdistan region of Iraq for an undisclosed amount.
In a statement issued here, RIL said that Reliance Exploration and Production DMCC, a wholly-owned subsidiary of RIL, had completed the transaction for divestment of its 80 per cent working interest and operatorship in the production sharing contracts (PSCs) for the Rovi and Sarta Blocks in the Kurdistan region to subsidiaries of Chevron Corporation. Austria’s OMV AG will continue to maintain its 20 per cent interest in each of the two blocks.
RIL’s exit from the blocks is in line with its portfolio rationalisation strategy of international assets and to create value for the E&P segment. RIL will continue to look for opportunities to invest globally, the company said in a statement here.
The company had, in 2007, paid a signing amount of $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.
In a separate statement, Chevron Corporation said its subsidiaries have completed a transaction to acquire interests in two blocks.
After the exit from Kurdistan, RIL now is left with a portfolio of 11 overseas oil and gas assets including two in Peru, three in Yemen (one producing and two exploratory), two each in Oman, and Colombia, one each in East Timor and Australia. Last year, RIL sold its majority participation interest in two blocks in Oman and one in East Timor.