Deliveries begin to oil reservoirs at the Badra oil field in Iraq

Gazprom Neft, the operator of the Badra oil field in Iraq, announces that deliveries of crude oil have started from the field to reservoirs of the Central Gathering Point (CGP). Two wells are currently producing oil at the deposit. Over the coming month, once the reservoirs have been filled, oil will be supplied into Iraq's main pipeline system which connects the deposit to the Basra export terminal.

Badra oil field in Iraq

Gazprom Neft began industrial oil production at the Badra oil field in May 2014. Comprehensive testing of the deposit’s crude oil preparation and transportation systems began at the same time. Commissioning and start-up operations have been completed at the CGP, on the export pipeline and the oil tank farm, with water and power supply systems and other industrial facilities also successfully completing the testing process.

New infrastructure to facilitate full-scale development of the deposit has been built at the oil field, including the first phase of the CGP with a capacity of 60,000 barrels per day and a 165-kilometre pipeline connecting Badra to Iraq's main pipeline system, which was completed in March 2014. Two wells are currently in production at the deposit, a third is soon to begin production and drilling of a fourth well commenced in June. Once reservoir capacity is reached, the company will begin commercial oil deliveries to the pipeline. The project’s initial production volumes are estimated at around 15,000 barrels daily. Peak production of 170,000 barrels per day or 8.5 million tonnes per year will be reached in 2017 and will remain at this level for 7 years.

Reference

The Badra oil field is located in Wasit Province in Eastern Iraq. According to preliminary estimates, geologic reserves at the Badra field amount to 3 billion barrels of oil.

The contract with the Iraqi government for development of the oil field was signed in January 2010 upon completion of a 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 is the project operator.

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.

The Badra oil field development project is scheduled to last 20 years with a possible 5-year extension. 17 production wells and 5 injection wells are planned to be drilled at the deposit. Under the terms of the contract, investors will be reimbursed for costs incurred and paid a fee of $5.5 per barrel of oil equivalent produced.

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