Iraqi authorities and Rosneft have yet to resolve a dispute on deals signed by the Russian company and the Kurdistan Regional Authority for energy assets in the region, Iraqi ambassador to Russia, Haidar Mansour Hadi, said Tuesday.
Although Iraq does not recognize the agreements and insists Rosneft must renegotiate them with the central, Baghdad government, Rosneft has continued to sign new ones.
Last week, Rosneft signed an agreement with KRG to analyze potential gas cooperation, during the St. Petersburg Economic Forum.
"Unfortunately it contradicts our constitution. In accordance with our constitution, only the central, Baghdad government has the authority to sign such contracts and so those ones are illegal," Hadi said.
Rosneft's agreements with the Kurdistan regional authorities include deals for crude supplies, as well as investment in oil and gas export infrastructure. Rosneft also signed a production sharing agreement on five Kurdish exploration blocks -- Avaha, Bey Hasan, Miran, Ain Zalah and Bagwan -- which are estimated to hold at least 670 million barrels in recoverable crude reserves.
Rosneft CEO Igor Sechin has not recently commented on the company's projects in KRG, but said last year it would not shy away from geopolitically sensitive areas as long as commercial and political conditions were sufficiently promising.
The validity of Rosneft's agreements was cast into doubt following the KRG referendum on independence last September. That led to a standoff between the KRG and the Iraqi central government, before KRG authorities agreed to freeze the results. Since then Iraqi oil minister Jabbar al-Luaibi has urged international oil companies not to sign new contracts with the KRG.
Luaibi and Russian energy minister Alexander Novak were both due to take part in ministerial meetings mid-June in Vienna.
Luaibi also still plans to visit Moscow, although the visit has been postponed twice this year, Hadi said. Luaibi will continue to serve as oil minister until the formation of a new government following recent elections. The new parliament must sit on July 1 and then elect a government.
Hadi said that despite the ongoing dispute with Rosneft, Iraq is open to further developing cooperation with Russian companies, including Lukoil and Gazprom as well as Rosneft and its subsidiary Bashneft.
