ECONOMY
Rosneft announced on Thursday it is temporarily suspending operations at one field in the Kurdistan Region, citing security concerns because of its proximity to the Syrian border. File photo: Dmitry Kostyukov/AFP
ERBIL, Kurdistan Region – Russian oil giant Rosneft announced it is suspending operations at one oil field in the Kurdistan Region near the Syrian border, citing security concerns stemming from Turkey’s military incursion against Kurdish forces in northern Syria.
Rosneft Vice President Eric Liron said the suspension is not a change in the planned operations in the Kurdistan Region, but the proximity to the Syrian border is “a deterrent,” Interfax reported.
Work on Block 8 near the border is on hold until Rosneft can guarantee the safety of its workers, Liron stated. Work in Block 11 continues as normal.
Turkey launched its Operation Peace Spring into northeastern Syria last week. The fighting is largely concentrated in the towns of Sari Kani (Ras al-Ain) and Gire Spi (Tal Abyad) on the border where the Turkish army and its Syrian proxies claimed to have seized control, but the SDF says it has retaken lost ground.
Iraq has deployed additional troops to reinforce the border with Syria.
Rosneft signed a deal with the Kurdistan Regional Government (KRG) in October 2017 to develop five oil blocks containing an estimated 670 million barrels of oil. The blocks are primarily located in northwestern parts of the Kurdistan Region.
The Russian giant’s entry into Kurdistan Region’s energy sector was lifeline to the KRG, which was struggling under the weight of a financial crisis and disastrous relations with Baghdad after the September 2017 independence referendum.
The KRG’s debt to Rosneft dropped by more than half in 2018, down from $3 billion in the first quarter to $1.4 billion as of the end of the year, Reuters reported.
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