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why positions “Rosneft” in Iraqi Kurdistan under attack?

Despite US and Iraqi protests, Russian company Rosneft plans to start oil production in Iraqi Kurdistan in August 2018, writes Maria Kuzmina on the site "Russian planet". This will bring profit to the company., as well as threatening lawsuits and difficult negotiations. What is Rosneft really trying to achieve in the region??

According to the Kurdish TV channel Rudaw, Rosneft to start producing oil at three out of five fields as early as next month. Estimated, field reserves are estimated at 670 million barrels, and it is planned to mine about 180 thousand barrels per day. According to Vedomosti, this will increase the company's 3,4 percent. For entering the project, the Russian company will pay up to 400 million US dollars. The share of the company, taking into account subsidiaries, in the project will be 80 percent.

Rosneft plans to produce oil in Iraqi Kurdistan became known last year. In February 2017 the parties discussed cooperation within the framework of the IP Week conference in London. And at the XXI St. Petersburg Economic Forum, Rosneft and representatives of Kurdistan signed an Investment Agreement, laid the foundation for the implementation of cooperation in the field of exploration and production of not only oil, but also gas.

"Entering the infrastructure project will contribute to the achievement of the company's strategic goals and will improve the efficiency of oil transportation to end consumers, including the supply of oil from Kurdistan to Rosneft refineries in Germany", — Igor Sechin, Chief Executive Officer of PJSC NK Rosneft, commented on the event in this way.

Representatives of Iraq were outraged by such a deal more than once.. 22 July, Iraqi Ambassador to Russia Haidar Mansour Hadi told the TASS news agency, that in Baghdad they are waiting for the arrival of the head of Rosneft, Igor Sechin, to discuss the situation around contracts with Iraqi Kurdistan. Earlier, in an interview with RIA Novosti, he called the agreement "illegal".

"In accordance with our laws, the central, Baghdad government — only it has the authority to sign the relevant contracts. We know, that LUKOIL, "Gazprom" work in the region of Kurdistan, but they abide by the law and act in accordance with it.", – the ambassador told the agency.

Почему позиции "Роснефти" в Иракском Курдистане подвергаются атакам?

According to Igor Sechin, Iraq and Kurdistan must resolve their political differences on their own. "I am not a politician, my business — extract oil. We strictly comply with the law in any zone, where we work", — he told reporters,.

The dispute between Iraq and Kurdistan arose over disputed territories, rich in oil. After the Iraqi Kurdistan independence referendum, who passed 25 September 2017 years and more 93 percentage of residents voted for independence, Iraq, Türkiye and all other countries in the region refused to recognize its results, including Syria. The referendum was also condemned by the United Nations and the United States.. "We hope for a united Iraq, who will destroy ISIS ("Islamic State»,  a terrorist organization banned in the Russian Federation) and, of course, fight back against Iran, — White House Press Secretary Sarah Sanders. Russia spoke cautiously, stated, which respects the territorial integrity of the countries of the region.

As a retaliatory step, Iraq regained control over one of the provinces of Iraqi Kurdistan — Kirkuk. This is where the main oil reserves are concentrated.. With the loss of Kirkuk, it will be more difficult for the authorities of Iraqi Kurdistan to fulfill their obligations to Rosneft. And this means, that Russia one way or another will have to negotiate with the Iraqi authorities. As reported by Kommersant, Rosneft announced the fact of such negotiations, although Baghdad assures, that so far he has not discussed anything with the Russian side.

However, this project in the region is not the only one for Rosneft. Corporation plans — launch of an export oil pipeline from Kurdistan to Turkey. The expansion of Rosneft in the region has complicated the plans of Western companies — known, that British BP claimed oil production in Iraqi Kurdistan — at 2013 year, the Iraqi government planned to give Kirkuk to this company. Other companies also operate in Iraqi Kurdistan — Norwegian DNO, Turkish Genel Energy. Three projects are led by the Russian company Gazprom Neft.

Interest in Kurdistan can be explained by, that this territory is in sixth place in the world in terms of oil reserves. At the same time, Kurdistan — one of the few regions, where else are major discoveries of new deposits possible. Export of oil from this territory goes through Turkey, so if Ankara imposes economic sanctions against Iraqi Kurdistan and closes transit — this could seriously interfere with Rosneft's plans to supply Kurdish oil to Europe. Baghdad, in its turn, threaten to sue.

Whatever it was, Rosneft entered the region at the right time — made an agreement with the Kurds even before, how the Iraqi military gained control of the disputed territories. strategy, certainly, very risky: even European countries, who previously strongly supported an independent Kurdistan (which would be created on the territory of Iraq, Syria and Turkey), now they talk about "territorial integrity". Looks like, Igor Sechin will still have to become a politician: if he manages to reach an agreement with all parties, this will give Russia access to Iraqi oil, which the US has been claiming for so long. And it's not just a business anymore., and real geopolitics.

                          
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