Russian energy giant Rosneft and the Government of the Kurdish Region have agreed on cooperation at five production blocks in Iraq.
The two parties have now signed the documents required to put into force Production Sharing Agreements (PSA).
The share of Rosneft Group Subsidiaries in the PSA will be 80%, the amount of payments for the projects farm-in and geological information for each of five blocks ranges from $40million to $110million
The heads of terms of the agreements and the basic principles of product distribution are similar to the PSA in Iraqi Kurdistan that were signed by other international oil and gas companies.
According to Rosneft, the parties agreed to implement the geological exploration program and to start pilot production as early as in 2018.
If successful full-field development of the blocks will start in 2021.
According to conservative estimates, the total recoverable oil reserves at five blocks may be about 670 million barrels.
The documents were signed in pursuance of the Investment Agreement which was concluded at the St. Petersburg International Economic Forum in 2017.
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