Badra oil field is located in Wasit Governorate in Eastern Iraq. According to preliminary estimates, the total oil in place at the Badra field amounts to 3 billion barrels. The contract with the Iraqi government for development of the oil field was signed in January 2010 upon completion of bid process in December 2009. The winning bid was submitted by a consortium of companies consisting of Gazprom Neft, KOGAS (Korea), PETRONAS (Malaysia), and TPAO (Turkey).
Gazprom Neft’s share in the project is 30 percent, while KOGAS has 22.5 percent, PETRONAS has 15 percent, and TPAO has 7.5 percent. The share of the Iraqi government, represented in the project by the Iraqi Oil Exploration Company (OEC), is 25 percent. Gazprom Neft is the project operator.
The project for development of the Badra oil field is designed to last twenty years, with a possible extension of five more years. The volume of capital investment required is estimated at approximately $2 billion. According to contract terms, investors will be compensated for expenses incurred, and will receive payment of $5.50 for each barrel of oil equivalent produced.
The start of production at the field is scheduled for 2013. By 2017, the production volume is forecast to reach 170,000 barrels of oil per day (approximately 8.5 million tonnes per year), and stay at that level for seven years. According to plans, a total of seventeen production wells and five injection wells will be drilled at the oil field.