Oil from the Badra field, which is being developed by Gasprom Oil, is being pumped into Iraqi pipelines.
Oil will be delivered to the terminal in Basra city on the coast of the Persian Gulf via the pipeline and from there it will be exported. At present the volume of transportation from Basra totals over 15,000 barrels a day, reported Gasprom Oil press office.
Badra is being developed by the international consortium, which is comprised of Gasprom Oil (30%), Korean Kogas (22.5%), Malaysian Petronas (15%), Turkish TPAO (7.5%) and Iraqi Oil Exploration Company (25%). The project implementation will take 20 years with the possibility to prolong for five more years.
“During several years the consortium led by Gasprom Oil has prepared the geologically difficult field in Iraq Badra to a wide-scale development. This is the first big foreign project of the company in the production field. We have acquired a unique experience, which in the future could be applied during development of other new fields both in Russia and abroad,” said Alexander Dyukov, chairman of Board of Gasprom Oil.
According to the terms of the contract, Iraqi State Oil Marketing Organization (SOMO) is involved in sale of oil extracted on Badra field and it has to hand over part of oil to the consortium partners to cover their costs. As soon as the costs are compensated, the investors will get a reward of $5.50 per each barrel extracted on Badra. The consortium partners will receive the first oil 90 days since commencement of commercial deliveries, after which each company will be selling its share of oil independently.
The first oil was extracted on Badra field in December 2013. The 165-km-long pipeline, which connected the field with the main pipeline system of Iraq, was put into operation in spring 2014. Two wells have been operating on the field and drilling of three more wells is in progress. The conditions of the service contract envisages that production on the field will reach 170,000 barrels a day.
