The results of the first tenders for the selection of contractors for the commencement of the Badra oil field development were summarised by Gazprom Neft in autumn 2010. Within the framework of the contracts awarded, Arabian Gulf Mine Action Company will perform the mine clearance for 3D seismic and road and well site construction till May 2011.
As of the end of January, about 50 percent of scheduled works have been completed with the quality control provided by the Iraqi TAAZ. Oil Exploration Company (OEC) conducts 3D seismic field works. In 2011 a contractor is to be selected to complete the processing and interpretation of the data received during the seismic surveys by the end of the year.
“The FEED development will allow progression to the next stage of the development of the Badra field that is, to select infrastructure construction contractors so that the production can get started in 2013 as stipulated for by the contract. Iraq is one of the significant regions of presence for Gazprom Neft, and the operations at the Badra field will enable the Company to escalate a major international project management experience”, - Deputy Chairman of Gazprom Neft Executive Board stated.
Badra Oil Field
The Badra oil field is located in the Wassit Province in Eastern Iraq with an estimated 3 billion barrels of oil in place. The contract to develop the Badra oil field was signed with the Iraqi Government in January 2010 following submission of a tender in December 2009.
This tender was awarded to an international consortium comprising Gazprom Neft, Kogas (Korea), Petronas (Malaysia) and TPAO (Turkey). Gazprom Neft's share, as lead operator on this project, is 30 percent, Kogas' share is 22 percent, Petronas' share is 15 percent and TPAO's share is 7.5 percent. The Iraqi Government, represented by the Iraqi Oil Exploration Company (OEC) retains 25 percent.
The Badra development project is expected to last for 20 years with a five-year extension option. The maximum oil production is expected to total about 170,000 barrels per day. The calculated investment is expected to amount to $2 billion.
(S0urces: Penn Energy, Iraqi Ministry of Oil)
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