The deal, signed on the sidelines of the Eurasian Economic Forum in Verona, will see Rosneft operate the pipeline project with a 60% stake, while current pipeline operator KAR Group will retain the remaining 40%.
In a previous statement released Wednesday, the company referenced an expected increase of the pipeline system’s capacity from 700,000 bpd to 950,000 bpd.
However, plans for the expansion have not yet been confirmed, The Oil and Gas Year reported.
In mid-September, Rosneft had announced an investment plan reportedly worth more than USD 1 billion that would see the company build a gas export pipeline in the Kurdistan Region with a capacity of up to 30 bcm (1.06 tcf) per year.
The announcement mentioned a second pipeline project in the works, presumably a reference to the Kurdistan Crude Export Pipeline expansion.
KAR Group is also the operator of the Bai Hassan and Avana fields, which were taken over by Iraqi federal forces in an operation that began Monday. The new project is a signal that the group will continue to play a key role in the Kurdistan Region’s oil market.
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