ONGC to bid for oil assets in Iraq

New Delhi, May 25 (UNI) The overseas arm of ONGC, OVL will now have to bid for an oil asset in Iraq following a new legislation that would recquire all oil contracts awarded by Saddam Hussein regime to come under a scanner.

This would mean that the consortium led by ONGC Videsh (OVL), the overseas investing arm of the state-run ONGC, would now have to bid for an oil asset in Iraq that was almost awarded to it by the Saddam regime.

Speaking to reporters, Iraq's oil minister Hussein al-Shahristani said the decision by Baghdad would lead to enacting a new legislation which would require all oil contracts awarded by the erstwhile Saddam Hussein regime to be scrutinised.

"Yes, any company that wishes to participate in Iraq would now have to bid for the assets," al-Shahristani said after a meeting with Petroleum Minister Murli Deora.

ONGC's consortium includes Mukesh Ambani's Reliance Industries and Sonatrach of Algeria who were about to secure the Tuba Oilfield in Iraq.

"We do want Indian entities to explore oil in our country," al-Shahristani said 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 to be vetted under the law," the minister said.

A contract for an exploration block in Iraq was signed with ONGC in November 2000, which was ratified by the government in May 2001.Oil ministry officials from Iraq said this too would be scrutinised.

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