Russia’s state-owned oil company Rosneft has begun to expand its operations in the Middle East with deals in Libya and Iraq, Bloomberg News reported Tuesday.
Rosneft, which is run by Putin ally Igor Sechin, struck a deal to purchase an undisclosed amount of crude oil from the Libyan National Oil Corp on Monday. The deal will also allow the Russian company to invest in exploration and production in the volatile North African country.
The chairman of National Oil Corp welcomed the deal, saying it would help to stabilize the warring country’s economy.
“We need the assistance and investment of major international oil companies to reach our production goals and stabilize our economy,” NOC Chairman Mustafa Sanalla said in a statement.
Rosneft announced on the same day it had struck a deal with authorities of the autonomous Kurdish region in northern Iraq to purchase oil until 2019. The deal with Kurdish authorities will also allow the Russian company to invest in exploration and production.
Chris Weafer, a Marco Advisory analyst, told Bloomberg that the deals combined “potentially good economics for Rosneft and good politics for the Kremlin.”
“Expect more deals from Rosneft in the Middle East and North Africa and across the developing world,” he said.
The Kurdish Minister of Natural Resources, Ashti Hawrami, said the agreement had ushered in a new era of cooperation between Russian and the Kurdish government.
“This deal represents a new beginning in our relationship with Rosneft and opens up the possibility of a broader relationship in all fields of energy cooperation,” Hawrami said.
Speaking on the condition of anonymity, one Kurdish official with knowledge of the deal told the Iraq Oil Report that the agreement was a reflection of growing confidence in northern Iraq’s oil market.
"It is the first time the KRG has supplied crude directly to a major global oil refiner and reflects the growing confidence of the international oil market in KRG crude," a Kurdish official said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
