A statement issued by Rosneft on Friday afternoon said that the documents were signed by Igor Sechin, Rosneft Chief Executive Officer, and Dr. Ashti Hawrami, Minister of Natural Resources for the Kurdistan Regional Government (KRG) ahead of a meeting between the Kurdish Prime Minister Nechirvan Barzani and Russian President Vladimir Putin at the St. Petersburg International Economic Forum.
“Rosneft and the Kurdistan Regional Government, as part of the XXI St. Petersburg International Economic Forum, signed a series of agreements on widening their cooperation in exploration and production of hydrocarbons, commerce and logistics,” Rosneft’s statement detailed.
“The crude is being delivered to the German refineries of Rosneft, which is indicative of our successful business diversification strategy. The Agreements are signed under the conditions profitable for the Company and set an example of well-weighed investments in one of the key Middle East regions,” Rosneft reported Igor Sechin as saying.
The deal was finalized on the sidelines of the economic forum that attracts leaders from 130 states and 12,000 people.
Currently, the Kurdistan Region exports oil products through a pipeline to world markets at the Turkish port of Ceyhan.
“The Parties signed an investment agreement under which they committed to develop cooperation in exploration and production, agreed on monetization of the export oil pipeline in Iraqi Kurdistan, as well as entered into a number of production sharing agreements,” read the statement.
Rosneft will gain access to the major regional transportation system with the throughput capacity of 700 thousand barrels per day, detailed the statement, “which is planned to be expanded up to 1 mln bbl per day by the end of 2017.”
The deal is a continuation and strengthening of one signed between the MNR and Rosneft in February, a contract on purchase and sale of crude for 2017-2019.
“The new agreements will allow to talk about full entry of the Company in one of the most promising regions of the developing global energy market with the expected recoverable reserves in the order of 45 billion bbl of oil and 5.66 trillion m3 of gas (according to the estimate of the Ministry of Natural Resources of Kurdistan Region). The agreements provide for further phased investments of Rosneft in Kurdistan Region,” read the statement.
The Kurdistan Region is currently exporting around 650,000 barrels of oil per day and is expected to increase its exports, mainly to the Turkish Ceyhan port by pipeline.
Last updated at 5 p.m., June 2
