The Russian company will take an 80% stake in the blocks and may pay an upfront fee of USD 400 million for farm-in and geological information. While the five blocks have yet to be identified, Rosneft reports their combined recoverable crude reserves could total 670 million barrels.
In a statement on its website, Rosneft said it would undertake a campaign of geological exploration in the blocks and target pilot production as early as 2018. The deal will include access to the Kurdistan Crude Export Pipeline system, which the company says it expects will see capacity expanded from 700,000 bpd to 950,000 bpd.
The timing of Wednesday’s announcement comes as welcome support for a region currently facing threats from Iraq, Turkey and Iran and as yet seeing little support from its US allies in the conflict over the disputed region of Kirkuk that heated up following a late-September independence referendum.
The support from Rosneft that began in early 2017 has provided the Kurdistan Region with a critical path forward in its independent economic development. It has allowed the regional government to settle debts with key IOCs and pave the way for stepped-up production of oil and gas.
See below for a timeline of the Russian oil giant’s moves in the Kurdistan Region in 2017:
February 21: Rosneft signs deal for Kurdistan crude
June 2: Rosneft enters Kurdistan Region blocks
September 4: Rosneft lent KRI cash for settlement
September 18: Rosneft eyes $1-bln Kurdistan pipeline deal
October 18: Rosneft signs contract for five Kurdistan blocks
Azule Energy and Rhino Resources will enter a strategic farm-in agreement for Block 2914A located in the offshore Namibian Orange… Read More
Africa-focused energy group Chariot has spudded the RZK-1 exploration well on the Gaufrette prospect at the Loukos Onshore licence in… Read More
Touchstone Exploration has acquired Trinidad-focused Trinity Exploration & Production in an all-shares deal, the Canadian upstream player said on Wednesday Read More
ExxonMobil is "optimistic and pushing forward" with the Rovuma LNG project in Mozambique and eyes an FID by the year's… Read More
SLB OneSubsea and Subsea7 have signed a long-term strategic collaboration agreement with Equinor and begun work on two of its… Read More
Presight has acquired a 51% shareholding in AIQ, an energy-focused AI player founded by ADNOC and G42, the companies announced… Read More
This website uses cookies.