The Russian energy major Rosneft has inked a deal with the Kurdistan Regional Government (Iraq) and have agreed to start the joint implementation of an infrastructure project for the operation of the oil pipeline in the region. Rosneft's share in the project will amount 60% while the current pipeline operator KAR Group will own the remaining 40% interest. The investment amount was not disclosed but is estimated at US$1.8bn.
Rosneft is increasing its foothold in the Kurdistan Autonomous region and also announced it would invest US$400m in five exploration blocks. The company and the government agreed to implement a geological exploration program and start pilot production as early as in 2018. In case of success, full-field development of the blocks is planned for 2021. These agreements also comes on top of the US$1.2bn that the company lent Kurdistan earlier in 2017 to help the region fill holes in its budget. In total, Rosneft has spent up to US$3.5bn in the region in spite of the rising tensions between Erbil and Bagdad.