India, Iraq Sign Four Pacts To Boost Ties

New Delhi, Aug 25, IRNA - India and Iraq inked a key pact for conclusion of a 13-year-old contract for exploration of an Iraqi block estimated to hold 645 million barrels of in-place reserves under a broad-based energy cooperation agreement. It was signed along with three other agreements after comprehensive talks between Prime Minister Manmohan Singh and his Iraqi counterpart Nouri al-Maliki on strategic bilateral, regional and international issues, including trade and investments in the war-wrecked country. At a joint press event, Singh said, Our energy trading relationship should be turned into a strategic partnership, including joint ventures in oil exploration. He noted that the two sides agreed to expand cooperation in agriculture, water resource management, pharmaceuticals, health care and information technology. We also agreed to further strengthen our counter-terrorism and intelligence cooperation.... Peace, security and stability in West Asia and North Africa are vital to both our countries, Singh added. On its part, Iraq has pre-qualified Indian companies such as ONGC Videsh Limited, MRPL and Reliance for participation in the Nasiriya Project Bid Round. Iraq has offered three oil blocks in Middle Furat Oil Field on nomination basis to India. The MoU in energy sector envisages cooperation in the areas of upstream and downstream oil and gas activities and related infrastructure. Block-8, located in the western desert in southern Iraq bordering Saudi Arabia and Kuwait, was awarded to OVL in November 2000 by the then Saddam Hussein government, pti reported. However, the government formed after the US invasion of the oil-rich country sought re-negotiation of the contract which has been pending so far. The post-Saddam Hussain regime had initially agreed to signing of a Production Sharing Contract (PSC), where OVL would have got ownership of the oil it produced from Block-8. But the success of post-war licensing rounds, where global majors committed to develop oilfields for a small fee, has seen Baghdad change track and offer a service contract to OVL. The Block 8 already has a discovery and is estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable. Other documents inked included MoU on bilateral cooperation in water resources development and management, foreign office consultations and training of diplomats. Earlier, Maliki, while interacting with Indian industry leaders invited investments in infrastructure, agriculture and healthcare to help re-build the war-ravaged country. He said Iraq will provide great opportunities and avenues in different sectors. The Middle-East country has also framed legislation to protect investments. Iraq is a rich country not just in oil. We can utilize and exploit our capacities in the best way (to enhance our economic ties), he added. Agreeing that Afghanistan issue concerned regional security and stability, the two sides reiterated their support for an Afghan-led, Afghan-owned reconciliation process and their commitment to working with regional countries and the international community to help Afghanistan achieve its objective of peace, stability, independence and development at an early date. The two leaders discussed situation in Syria and called upon all sides there to abjure violence and resolve all issues peacefully through dialog considering the aspirations of the people of the country. They stressed the urgent need to pursue reforms of the United Nations to make it more representative, credible and effective, the joint statement said./end