MOSCOW: ‘ Gazprom Neft Commences Commercial Oil Production and Supply From Iraq ‘

#AceFinanceNews – MOSCOW – September 01 – Gazprom Neft, the oil arm of Russian energy giant Gazprom, has started commercial oil production and supplies from the Badra field in south-eastern Iraq, Gazprom Neft said on Monday Itar-Tass reported.

​“Gazprom Neft, the operator of the Badra oilfield in Iraq, announces that first oil from the field is now being delivered to Iraq’s main pipeline system for transfer to the export terminal in Basra (the Persian Gulf),” Gazprom Neft said in a statement.

Current deliveries from Badra to the pipeline amount to over 15,000 barrels of oil per day and this level will be maintained until the end of 2014.

Under the service contract signed with the Iraqi government, the consortium of investor companies will begin receiving a share of the oil produced at the field after a period of 90 days following the launch of commercial supplies.

All the oil produced in southern Iraq, including at Badra, is Basrah Light oil. The Iraqi State Oil Marketing Organization (SOMO) is responsible for oil sales and each quarter will be delivering a share of oil to the investor companies to compensate for their initial project costs, Gazprom Neft said.

In late 2009 a consortium of Gazprom Neft, Kogas (Korea), Petronas (Malaysia) and TPAO (Turkey) was pronounced the winner of the Iraqi Government tender for the development of the Badra field located in the Wasit Province located in the eastern part of the country.

Gazprom Neft, as the project operator, holds a 30 per cent stake in the project, Kogas – 22.5 per cent, Petronas – 15 per cent and TPAO – 7.5 per cent. The Iraqi government represented in the project by the Iraqi Oil Exploration Company holds a 25 per cent stake.

In February 2012 Gazprom Neft received approval from the Iraqi Government to enter into the engineering, procurement and construction (EPC) agreement to build a central oil gathering and processing facility at Badra.