Rosneft lent KRI cash for settlement

LONDON, September 4, 2017 – The Kurdistan Region of Iraq borrowed money from buyers of its oil, including Rosneft, to fund a USD 1-billion remittance to Dana Gas and other members of the Pearl consortium to settle a long-running court case, international media reported over the weekend.


Singaporean trading company Trafigura confirmed that it was involved in the deal, which saw various traders agree to pay the regional government in advance for oil and gas shipments.

Reuters quoted an unnamed industry source involved in the debt deal as saying, “With debts to oil producers cleared and the litigation settled, the KRG is gearing up for the referendum on a positive note. It is obvious that it doesn’t want to carry forward any dead weight.”

The money paid to Dana Gas is to settle a case regarding payments for liquids production from the Khor Mor and Chemchamal gasfields. The agreement to pay USD 1 billion comes with an assurance from the company that it will reinvest USD 400 million in increasing production in the Kurdistan Region of Iraq.

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