Russian state-controlled oil producer Rosneft has signed production sharing agreements for five oil blocks in Kurdistan, the autonomous region of Iraq whose recent independence referendum sparked armed conflict with Baghdad.
Rosneft said on Wednesday that it would pay as much as $400m for an 80 per cent stake in the five production blocks, of which $200m could be offset by oil production.
The company, which has emerged as the most active foreign oil major in the region, said that experimental production could begin next year, with full scale production possible in 2021. The total recoverable oil reserves at the five blocks may be about 670m barrels, it said.
Iraqi forces on Wednesday retook Kurdish-controlled areas near Mosul, even as Washington urged Baghdad to rein in its offensive in northern Iraq.
Rosneft’s push into Kurdistan has come as Moscow increases its clout in the Middle East, through its decisive role in the Syrian war, its new-found friendship with Saudi Arabia, and gas and nuclear power deals with Turkey.