Rosneft and The Kurdistan Regional Government of Iraq signed Gas Business Development Agreement for Kurdish Region of Iraq
As part of the XXII St. Petersburg International Economic Forum, Rosneft and the Kurdistan Regional Government of Iraq signed an agreement securing the intention of the Parties to make a detailed analysis of potential gas cooperation options. The Parties ensure stepwise implementation of the arrangements following the Investment Agreement signed at the XXI St. Petersburg International Economic Forum.
Rosneft will focus its analysis on how to participate in the integrated gas business value chain in the region in order to extract maximum efficiency from investments and operations in such areas as exploration and production, transportation and trading with especial attention given to partnership and project (third party) financing options. Under the Agreement the Parties will elaborate an integral plan to progress the gas business within the Kurdish Region of Iraq. One step in this plan is the conduct of a pre-FEED of Iraqi Kurdistan's gas pipeline construction and operation. This is a key project to the monetization of the exploration and production opportunities Rosneft has been evaluating since signing a Gas Cooperation Agreement with the Kurdistan Regional Government of Iraq at the 10th Eurasian Economic Forum in Verona on 19 October 2017.
Following the outcomes of the integral development plan in terms of the attractiveness and efficiency of the options, Rosneft will decide on how to participate in the regional gas business.
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The mutually profitable partnership of Rosneft and Kurdistan commenced last winter: in February 2017, at the IP Week Conference in London (UK), the Parties signed an agreement on cooperation in exploration, production, infrastructure development, logistics and trading of hydrocarbons. According to the Agreement, the Parties signed a contract for the purchase and sale of oil to Rosneft from 2017 to 2019.
At the XXI St. Petersburg International Economic Forum, the Parties signed an investment agreement under which they committed to continue their cooperation in exploration and production including in the gas sector. October 18, 2017 was the effective date of the Production Sharing Agreement (PSA) on five production blocks in the Iraqi Kurdistan. On the sidelines of the X Eurasian Economic Forum in Verona, the Parties announced the launch of a joint infrastructure project for operation of the oil pipeline in the Kurdish Region of Iraq.
Information Policy Division
Rosneft Oil Company
Tel.: + 7 (499) 517-88-97
May 25, 2018
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