Gazprom Neft’s international projects are expected to account for least 10% of the Company’s total hydrocarbon production by 2020.
Gazprom Neft’s largest overseas asset is NIS, which has a range of functions. Naftna Industrija Srbije (Petroleum Industry of Serbia) produces and explores for hydrocarbon deposits in Serbia, Angola, Bosnia and Herzegovina, Hungary and Romania.
In Iraq the Company is developing the Badra field and carrying out geological investigation work on the Garmian (40% stake), Shakal (80% stake) and Halabja (80% stake) blocks in the south of Iraqi Kurdistan.
On 31 May 2014 Gazprom Neft started production at Badra in the Wasit province in eastern Iraq. The geological reserves at Badra are estimated at 3 billion barrels of oil. Peak production of 170,000 barrels/day (some 8,500 million tonne/year) is expected to be reached in 2017 and remain at this level for seven years.
The agreement with the government of Iraq to develop Badra was signed in January 2010 following a final tender won by a consortium comprising Gazprom Neft, Kogas of South Korea, Petronas of Malaysia and TPAO of Turkey. Gazprom Neft is the project operator. The Company holds a 30% stake in the project, Kogas 22.5%, Petronas 15% and TPAO 7.5%. The Iraqi government has a 25% interest through Oil Exploration Company (OEC). Under the terms of the agreement, the investors will be reimbursed for costs incurred and receive USD 5.5 per barrel of oil equivalent produced. The project has a
Gazprom Neft estimates that the combined geological reserves of the three blocks in Kurdistan are equivalent to more than 1.3 billion tonnes, or roughly 9.7 billion barrels.
In June 2009 Gazprom Neft acquired 20% of the National Oil Consortium (NOC), which was set up by major Russian oil companies to carry out production projects in Venezuela. In spring 2010, NOC and Corporacion Venezolana del Petroleo (CVP), a subsidiary of Petroleos de Venezuela S.A. (PDVSA), established the PetroMiranda joint venture to explore and develop the Junin-6 heavy oil field located in the Orinoco basin in Venezuela. NOC holds 40% of the joint venture. The Junin-6 block has forecast recoverable reserves of almost 10.96 billion barrels of oil. The block is 447.85 square kilometres large. In autumn 2012 the project produced its first oil.