Rosneft Signs Production Sharing Agreement for Kurdistan Oil Blocks
October 18 2017 - 12:59PM
Dow Jones News
By Adam Clark
Rosneft Oil Co. (ROSN.MZ) said Wednesday that it has signed off
on its previously announced production sharing agreement with the
Kurdish Autonomous Region of Iraq over five production blocks.
The Russian state-backed oil company said its subsidiaries will
have an 80% share in the production agreements. Rosneft's payments
for the projects' farm-in and geological information range from $40
million to $110 million, and may total up to $400 million. Of this,
up to $200 million could be compensated for with oil produced from
the blocks.
The two parties have agreed to begin pilot production as early
as in 2018, with full-field development planned for 2021. The total
recoverable oil reserves in the five blocks are estimated at 670
million barrels.
Shares in Rosneft closed down 1.90 rubles at 326.10 rubles on
Wednesday.
Write to Adam Clark at adam.clark@dowjones.com
(END) Dow Jones Newswires
October 18, 2017 12:44 ET (16:44 GMT)
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