Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Iraqi government seeks clarification from Rosneft about energy deal with Kurdistan region

Published 21/10/2017, 13:47
Updated 21/10/2017, 13:50
© Reuters. FILE PHOTO: Iraqi Oil Minister Jabar Ali al-Luaibi speaks during a media conference with Saudi Energy Minister Khalid al-Falih in Baghdad

BAGHDAD (Reuters) - Iraqi oil minister Jabar al-Luaibi said he had sought clarifications from Russia's biggest oil company Rosneft (MM:ROSN) about contracts it signed with the semi-autonomous Kurdistan region.

Rosneft "assured that the contracts are preliminary and not ready for implementation," the minister told reporters in Baghdad, giving no further details.

Rosneft agreed on Thursday to take control of Iraqi Kurdistan's main oil pipeline, boosting its investment in the autonomous region to $3.5 billion.

The Iraqi government has warned companies against signing deals with the Kurdistan region and Baghdad's forces this week wrested control of the oil-rich Kirkuk from Kurdish forces.

Rosneft agreed on Thursday to take control of Iraqi Kurdistan's main oil pipeline, boosting its investment in the autonomous region to $3.5 billion.

Rosneft will be investing in expanding the pipeline hoping to boost its capacity by a third to 950,000 barrels per day. That is the equivalent of about 1 percent of global supply.

The pipeline usually carries 600,000 bpd but volumes dropped to just over 200,000 bpd this week after Iraqi forces took over the region of Kirkuk.

The pipeline carries crude from Kirkuk and other fields in northern Iraqi to the Turkish Mediterranean port of Ceyhan.

© Reuters. FILE PHOTO: Iraqi Oil Minister Jabar Ali al-Luaibi speaks during a media conference with Saudi Energy Minister Khalid al-Falih in Baghdad

(Reporting Ahmed Rasheed, writing by Maher Chmaytelli Editing by Jeremy Gaunt)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.