In a further boost to the Iraqi Kurdistan region oil sector, US firm Chevron has completed the acquisition of interests in two blocks in the semi-autonomous region.

Chevron has acquired the 80 per cent stakes in the production sharing contracts (PSCs) of the Rovi and Sarta blocks from India’s Reliance Exploration & Production, according to a 19 July statement.

Chevron will join Austria’s OMV, which holds 20 per cent interests in the PSCs. The blocks cover a combined area of approximately 1,124 square kilometres, just north of Erbil.

This is Chevron’s first venture into Iraq. In 2008, the company was hopeful of winning a deal to develop the West Qurna oil field, but negotiations with Baghdad were unsuccessful. Chevron was prequalified for Iraq’s oil licensing rounds, but did not win any contracts.

Chevron now joins ExxonMobil, another US oil major that signed six PSCs in October 2011, a game changer for the Kurdistan Regional Government (KRG). Once considered home to wild-card oil explorers and small firms, the region now hosts two of the world’s largest oil firms.

The deal was criticised by Baghdad as ExxonMobil is also working on the development of the West Qurna Phase One oil field. The Oil Ministry says only it has the right to sign oil development agreements.