Russia's Rosneft Expands in Kurdistan With Five Oil Projects
- Company may pay as much as $400 million directly to KRG
- Blocks with 670 million barrels of reserves may start in 2021
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Rosneft PJSC signed a deal with Iraq’s semi-autonomous Kurdistan to develop five oil blocks, cementing ties with the region even as tensions over sovereignty flare into armed clashes between Kurdish forces and Iraqi government troops.
Russia’s biggest crude producer signed “documents required to put in force” production-sharing agreements with the Kurdistan Regional Government, giving Rosneft 80 percent of the projects, the company said in a statement on Wednesday. Rosneft may pay a fee of as much as $400 million, half of which could be repaid in oil pumped from the deposits, it said.