Three new wells brought into production at Badra field, Iraq

The total number of wells at the Badra field has now reached nine, all of which are in free-flow operation, with total production increasing to 64,000 barrels per day.

Drilling of a further three wells — the BD-2, P-14, and P-10 — has now commenced under a new contract with China’s ZPEC. Drilling of the P-07 well is ongoing, with its commissioning expected in August 2016.

Gazprom Neft continues its construction of oil and gas infrastructure at the Badra field including, in particular, pre-commissioning works for the third production line (“C”) at the central processing facility — something which will shortly allow this facility to reach its planned capacity of 115 barrels per day. Some 75 percent of equipment and facilities for the processing of associated petroleum gas (APG) are now in place.

The Badra oilfield is located in the Wasit Province, Eastern Iraq. Geological reserves at the Badra field are estimated to be in the order of three billion barrels. The contract for development of the field is expected to run for 20 years, with potential for extension by a further five. The terms of the contract with the Government of Iraq envisage compensation following the repayment of investors’ costs: this contract having been signed with the Government of Iraq in January 2010, on behalf of a consortium comprising Gazprom Neft (operator), KOGAS (Korea), PETRONAS (Malaysia), and TPAO (Turkey). Gazprom Neft’s interest in the project is 30 percent, with KOGAS, PETRONAS and TPAO holding 22.5 percent, 15 percent, and 7.5 percent, respectively. The Iraqi government’s holding is represented by the Iraqi Oil Exploration Company (OEC), which holds 25 percent

Field development is being undertaken by Gazprom Neft Badra, and marketing of Iraqi oil on the international market by Gazprom Neft Trading GmbH — both companies being subsidiaries of Gazprom Neft.