By IANS
New Delhi : A consortium led by ONGC Videsh, the overseas investing arm of the state-run Oil and Natural Gas Corp (ONGC), would now have to bid for an oil asset in Iraq that was almost awarded to it by the previous government.
This follows Baghdad's decision to enact a new legislation that would require all oil contracts awarded by the erstwhile Saddam Hussein regime to be scrutinised closely, the country's Oil Minister Hussein al-Shahristani said Friday.
"Yes, any company that wishes to participate in Iraq would now have to bid for the assets," al-Shahristani told reporters here after a meeting with India's Petroleum Minister Murli Deora.
The consortium, which includes Mukesh Ambani's Reliance Industries and Sonatrach of Algeria, was on the verge of securing the Tuba Oilfield, and had been asking Iraq for permission to start work there.
"We do want Indian entities to explore oil in our country," al-Shahristani had told reporters earlier in the day after a meeting with Prime Minister Manmohan Singh.
"But the Iraqi government is passing a new law. And all contracts or oil fields awarded previously will have be vetted under the law," added the minister, who is here to push energy ties with India and seek investments by Indian firms.
ONGC had also signed a contract for an exploration block in the western dessert of Iraq in November 2000, which was ratified by the government in May 2001. Oil ministry officials from Iraq said that this too would be scrutinised.
The oil minister explained that there were four categories of oil assets in his country. Among them, national oil firms would have exclusive rights to 27 fields that are discovered and developed and 25 others that have only been discovered.
Only 26 discovered fields, including Tuba, and 65 oil exploration blocks would be opened for bidding, he said. "Indian companies would be free to participate. No oil field will be earmarked for a specific country."
He said specific dates have not been decided on when the bids will be invited.
The oil minister said Iraq was currently pumping 2.7 million barrels of oil per day and the target was to increase it to four million by 2010 and six million over the next 10 years.
Iraq is said to have proven oil reserves of 112 billion barrels, which is second only Saudi Arabia.