Rosneft and the Kurdistan Regional Government, as part of the XXI St. Petersburg International Economic Forum, have signed an investment agreement, which includes monetization of an export oil pipeline in Iraqi Kurdistan.
Under the terms of the agreement, Rosneft will receive access to the major regional transportation system with the throughput capacity of 700,000 bpd, which will be expanded to 1 million bpd by the end of 2017.
“The company is widening its cooperation with Iraqi Kurdistan across the whole production chain,” Rosneft CEO Igor Sachin said. “The crude is being delivered to the German refineries of Rosneft, which is indicative of our successful business diversification strategy. The agreements are signed under the conditions profitable for the company and set an example of well-weighed investments in one of the key Middle East regions, which will make it possible for the company to expand its exploration and production geography, provide feedstock for Rosneft’s growing refining network and to raise profitability of our international assets.”