Russia's Gazprom Neft has increased its estimated costs for the Badra oil field to about US $3 billion, reports Bloomberg, citing a bond prospectus recently issued by its parent company.
The company had previously forecast costs at about $2 billion.
The field is being developed by Gazprom as lead partner (30% stake), along with Korea’s KOGAS (22.5%), Malaysia’s Petronas (15%), Turkey’s TPAO (7.5%), and Iraq (25%).
The group is planning to produce 170,000 bpd from the field by 2017, earning a fee of $5.50 a barrel over the 20-year span of the contract.
(Picture: Drilling at Badra -- Gazprom)