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United Nations

Russian Oil Companies Reap Benefits of Cosy Relations with Iraq

Strategic Insights

— 1 min read

Russian oil companies have secured 104 million barrels of Iraqi crude in Phase 8 of the UN oil-for-food deal, with 15 firms approved to lift the oil. Lukoil, however, has been left out due to its failure to develop the West Qurna field. Zarubezhneft leads the pack with 20 million barrels, followed by Actec with 16 million. Russian companies such as Rosnefteimpex and Sibneft, though, face challenges in allocating volumes. Belarusian companies are also benefiting from the Iraqi oil bonanza, with two firms awarded small contracts.

Key Takeaways:

  • 15 Russian oil companies have approval to lift a combined 104 million barrels of Iraqi crude in Phase 8 of the UN oil-for-food deal.
  • Lukoil has been left out of Phase 8 due to its failure to develop the West Qurna field, with a small 3 million barrel contract for Lukoil UK not counting towards the overall Russian quota.
  • Zarubezhneft leads the pack with 20 million Iraqi barrels to its name, followed by Actec with 16 million barrels.
  • Zarubezhneft plays a key role in allocating volumes to Russian companies, while Actec has strong backing from Russia's former Prime Minister Yevgeny Primakov.
  • Rosnefteimpex, partly owned by Rosneft, has a hefty allocation in RNI's first-ever contract, which is the result of more than two years of endeavour.
  • Belarusian companies, such as Belmetalenergo and Lada OMC, have been awarded small contracts worth an undisclosed amount.
  • Ukrainian companies, such as Federalny Torgovy Dim Nafta, have faced challenges in securing oil allocations, with a 1 million barrel contract cancelled by its own government.

Statistics:

  • 17 Russian companies, including Lukoil UK, have agreements with Iraq (Reports by NC, July 20, p4).
  • 104 million barrels of Iraqi crude are allocated to Russian companies in Phase 8.
  • 20 million barrels are allocated to Zarubezhneft, followed by Actec with 16 million barrels.
  • 3 million barrels are allocated to Lukoil UK.
  • 15% of the total volume allocated to Russian companies are held by Belmetalenergo and Lada OMC of Belarus.

Sources:

  • Table mentioning 15 Russian firms with approval to lift a combined 104 million barrels of Iraqi crude (Source: NC, July 20, p4)
  • Reports by NC (no publication date mentioned)
  • Source: NC, July 20, p4

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