Iraqi Kurdistan will ship a 600,000 barrels crude oil cargo to the Italian port of Trieste to be set to Russian Rosneft refineries in Germany via the Transalpine Pipeline (TAL) which links the Port of Trieste with the German states of Bavaria and Baden-Wuerttemberg, reported Oil Price News.
Rosneft’s representative told Russian News Agency TASS that the first oil cargo from Iraq will arrive this week, adding that the crude oil will be refined in India.
The representative said “as Rosneft is expanding its refinery network, the company plans to provide most efficient supplies to refineries.” He added “we assume that Kudristan’s oil allows us to diversify sources of oil.”
The cargos come as a way for Rosneft to have several oil suppliers which helps in constraining the risk of depending on one source of crude oil.
Rosneft and the Kurdistan Regional Government of Iraq signed an agreement on the sidelines of the IP week conference in London, which stipulates oil purchases by Russia’s top oil producer in the period between 2017 and 2019. The agreement stated that the buyers of crude oil will be Rosneft’s trading arm – Rosneft Trading SA.