The ministry, however, said in a statement that Rosneft must cooperate with the British energy giant BP if it wants to develop the oilfields in the oil-rich city, NRT reported.

“The minister explained the ministry had no objection if Rosneft wanted to expand its work in all of Kirkuk’s oilfields after coordination and agreement with BP,” the statement read.

Meanwhile, Iraqi Foreign Minister Ibrahim al-Jaafari told a news conference in Moscow on Wednesday that Baghdad seeks to facilitate work and boost economic ties with the Russian companies in the Iraq.

“We don’t want to close the doors in the face of any company that want to help us,” said Jaafari.

Kirkuk province now has a production capacity of 420,000 barrels a day (bpd), according to Baghdad, but only 120,000 barrels a day are being pumped and exports from the region are at a halt.

Baghdad has increased its pressure on the KRG to restore its authority over the region’s oil industry since a military operation against the Kurds in October 16.

Rosneft had paid authorities in the Kurdistan Region an advance of $1.3 billion as part of production sharing deals that have angered Baghdad.

Following the agreement, the Iraqi oil ministry said that only it or the federal government had the right to negotiate investments in the country's energy sector.

Reporter’s code: 50101