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Rosneft’s 20 February agreement with Iraq’s semi-autonomous Kurdish Regional Government will enable the Russian firm to develop “new markets worldwide for Kurdish crude oil” and supply the firm’s “expanding worldwide refining system,” says CEO Igor Sechin.
Under the deal Rosneft will buy Kurdish crude until 2019, likely sending it for processing in Germany.
The deal brought the amount of pre-payments for Kurdish oil since 2014 to $3bn, implying Rosneft has coughed up around $1bn. There are indications that Rosneft is using this as leverage over the cash-strapped government. Reuters reports that Rosneft is after light crude for its German refineries, which dovetails with Rosneft’s statements. (CONTINUED - 264 WORDS)