An opening meeting of the Joint Management Committee acting as a supervisory body for the Iraqi Badra oil field development was held in Kirkuk in the north Iraq on May 25-26, 2010. The meeting was attended by Gazprom Neft delegation led by Head of Major Projects Directorate Marat Atnashev.
In the course of the meeting, a Gazprom Neft’s subsidiary Gazpromneft Badra B.V. acting as a Project Operator presented the Project Progress Report. Since the oil field development contract came into force four months ago, key organizational and legal issues have been settled and preliminary agreements on the terms and stages of the field development have been achieved.
Further, the participants to the meeting considered the status of the Joint Venture Agreement involving the project parties, and agreed upon the JMC operating conditions and holding of required tenders.
Besides, the discussion covered the issues of pipeline and associated gas utilization facilities construction, as well as the need to demine the field area. To perform the procedure, the Ministry of Ecology of Iraq will involve a special experienced contractor.
The next Committee meeting is to be held in September 2010 in Moscow.
The international consortium including Gazprom Neft as the Project Operator holding 30 per cent, Korean Kogas (22.5 per cent), Malaysian Petronas (15 per cent), Turkish TPAO (7 per cent), and Iraqi geology prospecting OEC (25 per cent) won the tender for the Badra oil field development at the end of 2009. The contract with the Government of Iraq was signed on January 28, 2010.
The Badra oil field is located in the east of Iraq. As initially estimated, original oil in place exceeds 2 bln. bbl. The project is scheduled for twenty years with a possibility of a five-year prolongation. The oil-rate plateau is expected to make about 170,000 bpd. Total project investments are prospected at about $2 bln.