Russian companies to invest in Iraq’s energy industry, says official

Russian oil companies are seeking to invest in the Iraqi gas sector, the First Deputy Chairman of the Economic Policy Committee at the Russian Federation Council announced yesterday.

“Today, our leading oil and gas companies such as Lukoil, Bashneft, Gazprom Neft are actively working in Iraq,” Yury Fedorov said during his meeting with the Iraqi Ambassador to Russia Abdul-Rahman Al-Husseini in the Russian capital city of Moscow.

Fedorov pointed out that the total Russian investments in Iraq’s oil industry had “exceeded $10 billion.”

“We are exploring the possibility of diversifying the activities of Russian operators, in particular by connecting them to the gas sector,” Fedorov was quoted by official TASS as saying. “According to preliminary forecasts, this investment could triple our companies’ investment in Iraq,” he added.

The Russian official said that other companies, including “Zarubezhneft, Tatneft and Rosneftegaz” had shown interest in investing in Iraq’s oil and gas sector. “We intend to assist Iraqi friends in sooner restoration and further development of their electric power facilities,” he stressed.

In January, the Iraqi government agreed to run a fifth round of bidding for gas exploration tender in the country’s eastern governorate of Diyala. The exploration project – of which several countries are competing on – was reported earlier to would produce 750 million cubic feet of natural gas within 36 months.

Middle East Monitor