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Russia’s Gazprom Neft to start supplies from Iraq’s Badra field by August

June 06, 2014, 17:18 UTC+3 MOSCOW

The company plans to reach the peak output of 170,000 barrels per day or 8.5 million barrels annually by 2017

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Oil pipelines in Iraq (archive)

Oil pipelines in Iraq (archive)


MOSCOW, June 06./ITAR-TASS/. Russia’s Gazprom Neft, the oil arm of Russia’s natural gas giant Gazprom, plans to start oil supplies from the Badra oil field in Iraq at the end of June or at the beginning of August, CEO Alexander Dyukov said on Friday during the company’s annual general meeting.

Gazprom Neft started producing oil from the field on May 31. The planned output of 15,000 barrels per day will be reached in three months, when complex tests of a crude processing system are finished and the amount of oil sufficient to start the supplies will be accumulated.

The company plans to reach the peak output of 170,000 barrels per day or 8.5 million barrels annually by 2017 and keep that rate for seven years after that. The first stage of the central production facility with a 60,000 barrel daily output has been constructed on the field.

The project will repay with oil exports to Asia and Europe in 2014-2015. “We have chosen to recoup not with money but with oil at least in 2014 and 2015,” Dyukov said.

All Badra oil will be exported, and the Gazprom Neft’s share of the exports will equal its stake in the project, he said.

Badra’s reserves amount to 3 billion barrels of oil. Gazprom Neft is the operator of the project with a 30.0% stake, while South Korea’s Kogas holds 22.5%, Malaysia’s Petronas holds 15.0%, and Turkey’s ТРАО owns 7.5%. The Iraqi government holds 25% in the project.


Gazprom's plans in Arctic and Russia's south

Dyukov also said that Gazprom Neft plans to start drilling at the Dolginskoye field in three weeks. The field will become the second Arctic field to have been developed by the company.

Gazprom Neft plans to find partners for the development of the Dolginskoye oil field by the end of the year. The company has sent proposals to domestic and foreign companies, Deputy CEO Vadim Yakovlev said in a news conference.

Dolginskoye field’s reserves amount to more than 200 million tonnes of oil equivalent. Gazprom Neft Sakhalin, Gazprom Neft’s subsidiary, is the field’s operator.

The company also plans to take part in the development of the Yuzno-Kirinskoye gas field on the shelf of the Sakhalin Island and is now in talks with Gazprom on the matter, Dyukov said.

The launch of the Yuzno-Kirinskoye field was postponed to 2019 from 2018 due to additional exploration works. The field’s reserves amount to 636.6 billion cubic meters of gas and 97.3 million tonnes of gas condensate.

Gazprom Neft is also considering taking part in the development of the Velikoye hydrocarbon field in the Astrakhan Region.

“We examine all the projects the company can be interested in. But no decisions have been made so far,” Dyukov said.

The Velikoye field was discovered in 2012 and, with reserves of 300 million tonnes of oil equivalent, is considered to be one of Russia’s most promising.

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