Gazprom Neft has chosen Schlumberger to drill the first wells in the Badra oil deposit development project in Iraq, reports Oil Voice.
The contract will last three years, and will involve three drilling rigs, with the drilling of the first appraisal and development wells expected to be completed in early 2012.
A total of 11 wells are to be drilled over the three-year period, including one exploratory and three appraisal wells, which will later be converted into operating well stock.
The Badra oil deposit is located in the Wassit Province in Eastern Iraq with estimated reserves of 3 billion barrels of oil. The contract to develop the Badra oil deposit was signed with the Iraqi Government in January 2010 following a tender in December 2009.
Gazprom Neft, the oil arm of Russia's Gazprom, signed a deal for the Badrah field in January 2010 following a tender in December 2009, along with partners TPAO, KOGAS and Petronas.
The consortium is to invest $3.52 billion. Gazprom Neft holds 30 percent, KOGAS 22.5 percent, Petronas 15 percent, TPAO 7.5 percent and the Iraqi Oil Exploration Company (OEC) 25 percent.
Oil production at the deposit is expected to begin in 2013. Production is expected to reach 170,000 barrels per day (around 8.5 million tonnes a year) by 2017 and remain at this level for seven years.
Gazprom Neft completed a 3D field seismic survey at the deposit in early May 2011. The preparation of the front end engineering design (FEED) will be completed in summer 2011.
(Sources: Oil Voice, Iraq Energy)