Igor Sechin, Rosneft’s Chief Executive recently announced he flew to Caracas recently and acquired two additional offshore gas blocks despite the state-owned Russian company experiencing extreme financial loss in two of the world’s most politically and economically unstable countries, Kurdistan and Venezuela.
Despite the geopolitical problems in both countries, Rosneft, the Russian state-owned oil company decided to increase its investment in Venezuela in order to meet projections for production goals. Mr. Sechin announced after his visit to Caracas, “For the first time in the history of Venezuela, a foreign company received 100 per cent of the licence.” Rosneft successfully acquired a thirty-year lease containing 180 billion cubic meters of gas. Rosneft has also made vast investment in Iraqi Kurdistan, investing in both infrastructure and and exploratory drilling. The company's vice president, Pavel Fyodorov added,
“Kurdistan has, in our view, a fairly exciting economic proposition in place. It has very high-quality geological reserve and there are fairly low costs associated with the production,” he said. “The terms that have been offered to us are remarkably value-accretive to Rosneft shareholders.” Source: Financial Times