Gazprom Neft has started work to reactivate well Bd1 at Badra, Iraq, where it is operator. The work will make it possible to determine the technical state of the well and subsequently test four productive stratas at the site.
This is the third well at Badra that Gazprom Neft has started work on. The first appraisal well was drilled in November 2011, the second in January. Once investigation of the wells has been completed, the appraisal wells will become operational.
Three drilling rigs operate simultaneously on the site. During 2012 an additional four wells will be drilled, including a deep exploration well to study the lower strata at the deposit.
The results of the drilling and seismic work carried out in 2011 will provide a better understanding of the site structure, and the final exploration plan will be drawn up in 2013.
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Well Bd 1 is 5,000 m deep, a record for Iraq at the time it was drilled in 1979.
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 ТРАО (Turkey).
Gazprom Neft's share, as lead operator on this project, is 30 per cent, Kogas' share is 22.5 per cent, Petronas' share is 15 per cent and ТРАО's share is 7.5 per cent. The Iraqi Government, represented by the Iraqi Oil Exploration Company (OEC) retains 25 per cent.
The Badra development project is expected to last for 20 years with a five-year extension option. The calculated investment is expected to amount to about $2 billion. Under the agreement, investors will be reimbursed for costs incurred and paid a bonus of $ 5.5 per barrel of oil equivalent produced.
First production at the deposit is planned for 2013. By 2017 production is expected to reach 170,000 barrels per day (about 8.5 million tonnes per year) and maintain at this level for 7 years. In total 17 operational and five injection wells will be drilled.
In February 2012 Gazprom Neft received approval from the Iraqi government to enter into an engineering, procurement and construction (EPC) agreement to build a central oil gathering and processing facility at Badra. Over 2012 Gazprom Neft will continue to study the results of tenders to build infrastructure at Badra.
