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Gazprom Neft Increases Russian Presence in Iraqi Kurdistan with Acquisition of Sargala Oil Field

Kurdish Prime Minister, Nechirvan Barzani said low oil prices have dealt a "painful blow" to the regional economy.

Gazprom Neft, a Russian oil producer has taken control of Sargala field in Iraqi Kurdistan. Canadian company, WesternZagros Resources Ltd., Gazprom's Neft's Middle East Subsidiary, transferred its hold of the field as stipulated in a 2012 contract, the oil field is now managed by the Russian oil company. Currenly, Sargala oil field is part of the Garmian block which is inaugurated in 2015 and has since produced 19.8 million barrels. “Gazprom Neft’s interest in the Garmian block stands at 40 percent,” the company recently stated. “Detailed field appraisal on this block is currently ongoing in preparation for its being opened up for large-scale development, with the Kurdistan Regional Government currently assessing preliminary plans, to that end.”

While Iraqi Kurdistan operates under the strain of conflict and violence that has played a dominant role in the disruption of oil production, the federal government in Baghdad has also failed to distribute budgetary concessions to Kurdistan as their own reserves further dwindle with the drop of global oil prices, so much that Kurdish Prime Minister, Nechirvan Barzani said low oil prices have dealt a "painful blow" to the regional economy. 

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