Report: Rosneft plays first fiddle in Iraq’s oil flows talks

MOSCOW, Mar 6 (PRIME) -- Russian oil major Rosneft is a crucial participant of negotiations between Iraq’s federal government and Iraqi Kurdistan on resuming oil deliveries from the semi-autonomous region, Reuters news agency reported late on Monday citing two sources.

In February 2017, Rosneft and the government of Iraqi Kurdistan signed an energy cooperation agreement and a contract on oil exports and imports for 2017-2019. In October, the parties inked documents to put into force a product sharing agreement on five blocks. Also in October, the sides announced a start of using a pipeline, in which Rosneft may hold up to 60%.

In September, 92.7% of Iraqi Kurdistan’s people voted for independence of the region. Iraq’s government announced the referendum illegal and it also considered illegal all deals concluded without its participation. Oil exports from the region through Turkey fell sharply.

On February 27, Iraq’s Prime Minister Haider Al Abadi said that exports will resume soon.

“The two industry sources, who are involved in the talks, said the Kurdistan Regional Government has told Baghdad it is ready to resume full exports and transfer the funds raised to the Iraqi government on two conditions - that some oil is kept for local refining and Baghdad pays pumping tariffs to Rosneft,” according to Reuters.

The sources also said that a response from the federal government is now awaited to come to a long-term compromise.

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