Rosneft Said to Prepay About $1 Billion for Kurdistan Oil

  • Russian company’s trading arm buying Kurdish oil until 2019
  • Deal with Kurdistan comes as Rosneft expands overseas business

An oil refinery east of Erbil, the capital of Iraqi Kurdistan.

Photographer: Safin Hamed/AFP via Getty Images
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Rosneft PJSC’s commitment to pay in advance for crude oil from the Kurdish region of Iraq is about $1 billion, according to two people with knowledge of the matter who asked not to named as the supply deal is private.

The Russian state-run producer’s trading arm will buy Kurdish oil from now until 2019, Rosneft said in February, without specifying how much crude it would take. At $1 billion, Rosneft would account for about a third of the prepayment deals the Kurdish Regional Government negotiated with oil traders.