Rosneft announced on 18 October 2017 that it has signed the required documents with Kurdistan Regional Government (KRG) to put into force Production Sharing Agreements (PSAs) for five blocks in the semi-autonomous region. The parties had agreed the PSAs in June 2017, on the side-lines of the St. Petersburg International Economic Forum. The PSAs form part of a series of agreements between Rosneft and the KRG, aimed at widening cooperation in E&P of hydrocarbons, commerce and logistics.<P />In a statement, Rosneft said that the terms of the agreements and the basic principles of product distribution are similar to the PSAs the KRG has signed with other international oil and gas companies. The Russian company will take an 80% stake in the blocks and may pay an upfront fee of US$ 400 million for farm-in and geological information. While the five blocks have yet to be identified, Rosneft said their combined total recoverable oil reserves are estimated at around 670 MMbo. The company will conduct a geological exploration campaign and is targeting pilot production as early as 2018.
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