Sixth production well brought on-stream at Gazprom Neft Badra oilfield, Iraq
Drilling of further wells (P-09, P-15 and P-12) is currently ongoing, under a contract entered into with Chinese company ZPEC; these are expected to be brought into production in 2016.
Drilling of the first three production wells at the Badra field was completed in 2015. Lead times for drilling of subsequent wells has been considerably reduced, largely possible thanks to detailed analysis of drilling outcomes, a change in contracting strategy, and detailed evaluation of the risks involved.
Head of Gazprom Neft Major Projects Directorate Denis Sugaipov commented: “We continue to increase production at the Badra field, and the entire project is, overall, progressing according to plan: new wells are being brought into production, and other infrastructure facilities are being built. We are very optimistic about the future.”
The Badra oilfield is located in the Wasit Province, Eastern Iraq. Preliminary estimates indicate total oil in place at the Badra field to be in the order of three billion barrels. Development of the field is expected to run for 20 years, with potential for extension by a further five. Commercial production commenced in 2014. Following repayment of investors’ costs, the terms of the contract with the Government of Iraq envisage compensation in the order of $5.50 per barrel of oil: this contract having been signed with the Government of Iraq in January 2010, on behalf of a consortium comprising Gazprom Neft (operator), KOGAS (Korea), PETRONAS (Malaysia), and TPAO (Turkey). Gazprom Neft’s interest in the project is 30 percent, with KOGAS, PETRONAS and TPAO holding 22.5 percent, 15 percent, and 7.5 percent, respectively. The Iraqi government’s holding is represented by the Iraqi Oil Exploration Company (OEC), which holds 25 percent.
- Photogallery "Exploration and Production in Iraq":
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