India looks to resume operations at stalled hydrocarbon block in Iraq

livemint.com:

NEW DELHI : At a time when Iraq has emerged as a major supplier of crude oil to India, the Centre is looking at resuming operations of state-run ONGC Videsh Ltd’s (OVL) hydrocarbon exploration block in Iraq, which has been under force majeure since 2003, said two people with knowledge of the development. One of the persons said Indian energy companies may look at investing in oil and gas assets in the West Asian country. “Several aspects would be considered for resumption of operations at the stalled project and investments, including the security situation.

There are some issues on which clarity would be required," said this person. ‘Block 20’, earlier known as Block 8, is a large on-land exploration block in the Western Desert of Iraq, spread over 10,500 sq km. OVL had acquired 100% stake in the block by signing the exploration and development contract in November 2000, However, force majeure was declared in 2003 amid security concerns.

Force majeure is removes liability for unforeseeable and unavoidable catastrophes that prevent participants from fulfilling contractual obligations. Both the subjects of investments and resumption of operations at the stalled projects were discussed during an India-Iraq Joint Commission Meeting (JCM) last month. The JCM was held during the visit of Hayan Abdul Ghani Abdul Zahra Al Sawad, Iraq’s deputy prime minister for energy affairs and oil minister.