Gazprom Neft and the Government of Iraq Have Initialed the Badra Oil Field Contract

Today the top management of Gazprom Neft and the Government of Iraq have initialed the Badra oil field development contract. Signing of the contract by the parties is scheduled for early 2010.

On December 12, 2009 Gazprom Neft as an operator holding 30% in the consortium has won a license to develop an Iraqi Badra oil field with reserves of 2 bln. bbl of oil. The rest parties of the consortium are represented by Korea’s Kogas (22.5%), Malaysia’s Petronas (15%) and Turkish TPAO (7.5%). The Iraqi government holds a 25% stake in the consortium. Gazprom Neft will be recovered for oil field development costs and remunerated at the rate of USD 5.5 per a produced barrel of oil (or in the form of adequate volume of oil). The project implementation is scheduled for over 20 years and is to be launched in 2010.