India and Iraq have signed a Memorandum of Understanding (MoU) for the exploration of an onshore Iraqi oil block, estimated to hold 645mn barrels of in-place reserves
Block-8, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, had been awarded to ONGC Videsh Limited (OVL) in November 2000 by the then Saddam Hussein government, PTI reported.
The MoU in energy sector envisages cooperation in the areas of upstream and downstream oil and gas activities and related infrastructure, Iraq’s Oil Ministry sources said.
Indian Prime Minister Manmohan Singh said, “Our energy trading relationship should be turned into a strategic partnership, including joint ventures in oil exploration.”
On its part, Iraq has also pre-qualified Indian companies such as OVL, Mangalore Refinery and Petrochemicals Limited (MRPL) and Reliance for participation in the Nassiriya Project bid round in the country.
Iraq has already offered three oil blocks in Middle Furat Oil Field on nomination basis to India last month.
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