Monday, January 30 2006 15:47 Hrs (IST) - World Time -

New Delhi: Oil and Natural Gas Corp has rubbished US criticism of it teaming up with a Chinese firm to acquire a Syrian oilfield, saying the 573 million dollars spent on taking a stake in al-Furat fields was not a Foreign Direct Investment (FDI) to the UN-sanctioned country but was a payout to a Canadian firm for the equity.

"I have seen media reports of US taking strong exception to investment (in Syria). We are (only) paying PetroCanada for the acquisition and not making any FDI. The Canadian firm had already invested in Syria and we are taking over their stake," said Oil and Natural Gas Corporation (ONGC) chairman and managing director Subir Raha.

Reports last week had said that the US had set an aide memoire, saying the it strongly opposed such investments in Syrian resources as the latter's regime may exploit news of any FDI as evidence that it was not isolated and therefore not comply with UNSC resolution, seeking its complete cooperation in investigation into the assasination of former Lebanese Prime Minister Rafiq Hariri.

"We shall comply with UN sanctions completely and totally," he said emphasising ONGC had not defined any international sanctions anywhere in the world.

A Petroleum Ministry official questioned US saying, "What were they doing when PetroCanada made that investment. They have been telling us not to do business with Damascus but have they stopped US companies from investing in Syria."

"Today they are telling us not to do business with Iran and Syria, tomorrow they may say the same for Sudan or Myanmar or some other country. At stake is not just our energy security but also our right to take decisions ourselves," he said.