New Delhi, Nov. 7: Reliance Industries (RIL) has bagged two oil blocks in the Kurdish region of Iraq. The blocks may hold reserves of one billion barrels.

RIL signed the contract for the two blocks — Rovi and Sarta — with the Kurdish regional government. The company paid $15.5-17.5 million for the deal.

The blocks measuring 450-500 sq km have almost 80 per cent oil-bearing structure, and RIL is confident of making a discovery.

The Kurdish regional government is reported to have awarded the two blocks to RIL along with five other international players.

The move may not go down well with Baghdad which is opposed to the unilateral selling of crude blocks in the absence of a national law.

On being asked whether the regional government had defied Baghdad’s proposed oil law, company officials said the blocks had been allotted in accordance with the proposed law.

Officials said Reliance Energy had been given a 100 per cent stake in the two blocks. However, later Iraq can mandate a company to have a stake in the blocks after a discovery, according to the proposed law.

RIL was awarded the oil blocks a day after it found more gas in the Krishna- Godavari basin, off the east coast.