Gazprom Neft completes construction of housing complex for employees in Iraq

Gazprom Neft has finished building the first phase of a housing complex at the Badra oil field, for which the company is the development operator. The permanent complex for workers involved in developing the oil field can accommodate around 100 people. The construction of infrastructure facilities will continue in years 2012-2013, when oil production is expected to begin in Badra. The camp capacity will be extended to 450 people.

The complex currently includes 80 comfortable homes for workers, as well as offices, a health clinic, utility rooms, sports facilities, and independent energy and water supply facilities.

The creation of the complex is the latest phase in preparations for the main stage of developing the oil field, where the drilling of the first wells is expected to be completed in early 2012.

Reference

The Badra oil field is located in Wassit Province in Eastern Iraq with an estimated 3 billion barrels of oil in place. The contract to develop the Badra oil field was signed with the Iraqi Government in January 2010 following submission of a tender in December 2009. An international consortium comprising Gazprom Neft, Kogas (Korea), Petronas (Malaysia) and ТРАО (Turkey) became the preferred bidder in this tender.

Gazprom Neft's share, as lead operator on this project, is 30 per cent, Kogas' share is 22.5 per cent, Petronas' share is 15 per cent and ТРАО's share is 7.5 per cent. The Iraqi Government, represented by the Iraqi Oil Exploration Company (OEC) retains 25 per cent.

The Badra oil field development project is scheduled to last 20 years, with a possible extension of 5 years. Peak oil production is expected to reach around 170,000 barrels per day. The estimated amount of investment is around $2 billion. Under the terms of the contract, investors will be reimbursed for their costs and paid $5.5 per barrel of oil equivalent produced.

Oil production at the field is expected to begin in 2013. Production is expected to reach 170,000 barrels per day (around 8.5 million tonnes a year) by 2017 and remain at this level for 7 years.