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Gazprom Neft enters Iraqi oil market

07th February 2014

Gazprom Neft announces plans to start commercial oil production in the spring at the Badra oilfield in Iraq

Gazprom Neft starting oil production at the Badra oilfield in Iraq

Gazprom Neft, the oil arm of Russian gas producer Gazprom, has revealed plans to start commercial oil production in the spring at its Badra oilfield in Iraq, reports Reuters. 

Vadim Yakovlev, a first deputy chief executive of Gazprom Neft, said "We plan to start production (at Badra) in spring ... the target of this year is to reach output of 15,000 barrels per day."

The company is aiming for hydrocarbon production of around 100 million tonnes of oil equivalent (2 million bpd) by 2020.

Total output at Badra was projected to make about 170,000 bpd of crude oil by 2017.

The oil field is in the Wassit Province, locacted in eastern Iraq, and is projected to have about 3 billion barrels of oil. The Russian company submitted a tender in December 2009 and signed a contract with the government in January 2010 to develop the field.

As a result of continued violence in Iraq, due in part to neighbouring Syria’s civil conflict, has caused security issues for the companies. As a result, Gazprom Neft had difficulties in working with the central Iraqi government concerning oil development in the “semi-autonomous Kurdistan region,” where it has interest in the Garmian, Shakal and Halabja blocks.

Yakovlev said the company will reveal a commercial discovery at Garmian and begin a test production at the block this year.

He added that Kurdistan alone may be able to produce up to 10 million tonnes of oil equivalent (200,000 barrels per day) at Gazprom Neft's projects by 2020.

 

 

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