Commercial production at Sarqala field, Kurdistan Region of Iraq, reaches its millionth barrel

Gazprom Neft Middle East, a subsidiary of Gazprom Neft, currently undertaking various exploration and production projects in the Kurdistan Region of Iraq (KRI), has produced its millionth barrel of oil at the Sarqala field, KRI (of which it is operator) through its joint enterprise with Western-Zagros Resources. Production at the field is expected to reach 1.5 million barrels by the end of 2015.

Gazprom Neft is currently involved in four projects in the Republic of Iraq, three of which are located in the Kurdistan Region.

First oil was struck at the Saqala field (within the Garmian block) in 2011, under pilot testing of commercial operations, in the course of formation testing, with commercial production commencing in February 2015. Production at the Sarqala-1 well is currently running at around 5,000 barrels per day. The oil enters a treatment facility located near to the well, with marketable oil sent to a plant in Bazian.

Mikhail Kholodov, CEO, Gazprom Neft Middle East, commented: “Producing the millionth barrel of oil in 2015 is a major achievement for us, marketing an important milestone in developing this project. Active development is continuing at the Garmian block, and we expect to drill three new wells in the next two years. The process of transferring operational control of the block is ongoing, with Gazprom Neft expected to become operator of the project no later than the end of the first quarter of 2016.”

Notes for editors

Gazprom Neft is currently involved in four projects in the Republic of Iraq, three of which are located in the Kurdistan Region.

Gazprom Neft Middle East has interests in the Garmian, Halabja and Shakal blocks, holding an 80-percent interest in the Halabja and Shakal fields (the remainder being held by the Kurdistan Regional Government). Two exploration wells have now been drilled at the Shakal block, with additional 3D seismic investigations now ongoing.

Gazprom Neft’s interest in the Garmian block stands at 40 percent. Detailed field appraisal on this block is currently ongoing in preparation for its being opened up for large-scale development, with the Kurdistan Regional Government currently assessing preliminary plans, to that end.

Gazprom Neft’s fourth project in Iraq concerns the development of the Badra field, located in the Wassit province, in the east of the country. Preliminary investigations suggest reserves at the Badra field could total as much as three billion barrels of oil. Gazprom Neft is operator on this project, with a 30-percent interest. Commercial production at the Badra field commenced in August 2014.