New well brought into production at Badra field, Iraq
A third well has now been brought into production at the Badra oilfield, Iraq, under field development operator Gazprom Neft. The commissioning of this third well ensures the sustainable production of at least 15,000 barrels per day. Drilling of a further three wells at the Badra field is continuing, under a contract previously concluded with China’s ZPEC.
Initial results from the prior drilling of three wells at the Badra field have revealed this deposit to have one of the most complex geological structures in Iraq: a situation compounded by the absence of comprehensive and historical field data, with such data as was available being limited to an insignificant amount, obtained in the 1970s from the drilling of a single exploration well. All necessary infrastructure at the Badra field, allowing the production and transportation of crude oil, was constructed within a period of three years, with first oil achieved in December 2013, and full-scale field infrastructure testing commencing in May 2014. The field has been in commercial production since August 2014.
November saw investors in the producing consortium meet a key condition under the terms of the development contract with the Government of Iraq, in supporting production at a volume of 15,000 barrels per day for a period of 90 days. Gazprom Neft, together with other project participants, can expect to start receiving their share of Badra oil production as early as the first quarter of 2015.
The Badra oilfield is located in the Wasit Province, Eastern Iraq. Preliminary estimates indicate total oil in place at the Badra field 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. Following repayment of investors’ costs, the terms of the contract with the Government of Iraq envisage a compensation in the order of $5.50 per barrel of oil. The contract was 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.
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