Gazprom Neft completes seismic survey in Iraq

Press-release

Gazprom Neft announces that on the 4th of May it completed a 3-D field seismic survey at the Badra deposit in Iraq. The Iraqi Oil Exploration Company (OEC), who Gazprom Neft contracted in November 2010, carried out the seismic survey.

The survey was conducted over an area of 165 sq km. The processing and interpretation of the data received is scheduled for completion in November 2011.

The Badra deposit is located in an area with a challenging profile, with a significant part of the field surface requiring the clearance of mines. During the preparation for the seismic profile, work was carried out to remove weapons over an area of approximately 12,000 sq km.

"As the operator of the Badra deposit development project, Gazprom Neft is fulfilling all of its obligations. The surveys have provided detailed seismic information which will help to give us a better understanding of the structure of the deposit. In addition it will also help to qualitatively change the assessment of the reserves and prepare for the development of Badra", commented Boris Zilbermints, Gazprom Neft's Deputy CEO for Exploration and Production.

Reference

The Badra deposit is located in the Wassit province in eastern Iraq. Initial assessments indicate that the geological reserves in Badra could reach 3 billion barrels of oil. The contract with the Iraqi government for the development of the deposit was signed in January 2010 following a tender in December 2009. A consortium made up of Gazprom Neft, Kogas (Korea), Petronas (Malaysia), and TPAO (Turkey) won the tender. Gazprom Neft's share in the project as operator amounts to 30%; Kogas - 22.5%, Petronas - 15%, and TPAO - 7.5%. The Iraqi government share, represented in the project by the Iraqi Oil Exploration Company (OEC), is 25%.

The project to develop the Badra deposit is estimated to last 20 years with the possibility of extending it for another 5 years. It is estimated that the peak level of production will amount to approximately 170 thousand barrels per day. The estimated investment is approximately $2 billion.