Iraq's Oil Ministry is starting to black list companies that have signed deals with the Kurdistan Regional Government.

Oil Minister Hussain al-Shahristani has said deals signed after February 2007 -- when a tentative agreement was reached between the KRG and Baghdad on a draft oil law -- would be considered invalid. The agreement has since been scuttled, and the KRG has passed its own oil law and signed dozens of deals since August.

The ministry accuses the KRG of moving unilaterally in developing its oil sector, which Baghdad calls unconstitutional, and has said any company involved will be blocked from purchasing Iraq oil or bidding on upcoming contracts in the rest of Iraq.

Reliance was listed among seven deals the KRG announced Nov. 6. Chief Executive PMS Prasad said it was "not a new contract," International Oil Daily reports. He said the two sides were just bringing a deal reached in 2006 in line with the new KRG oil law.

"We are trying to explain to the Iraqi Oil Ministry the circumstances under which we signed the PSC with KRG," Prasad said. "We are keen on engaging Baghdad."

The KRG announcement in November detailed two exploration blocks awarded to Reliance "had been negotiated prior to the entry into force of the Kurdistan Oil and Gas Law, and had been awaiting the passage of the Law and the approval of the Council."

Reliance said it will still register by the Jan. 31 deadline set by the Oil Ministry to prequalify for new awards issued by the central government.