In the 90 days up to late November 2014 around 15 000 bpd were released from the Badra oilfield into Iraq’s main pipeline system. This is in line with the basic terms of the field’s development contract. Gazprom Neft operates the Badra field.
Once the field is achieving this level of production over a 90-day period, the consortium investors will be reimbursed for costs incurred and paid a fee of US$5.5 per boe produced.
The Iraqi State Oil Marketing Organisation is responsible for oil sales from the Badra field. Each quarter the organisation will deliver a share of oil from the Basra export terminal on the Persian Gulf to the investor companies to reimburse their initial project costs. Each of the companies signed an agreement to this effect at the end of November. Each investor company will then be selling on their share of oil independently.
Commercial shipments of crude oil from the Badra field began three months ago. All of the infrastructure required to produce and deliver oil from the field has been developed over a period of only years. Two wells are currently in production at the field; a third well has been drilled and tested and is soon to be commissioned and a further six exploration wells are currently being drilled. The second phase of the central gathering point (DSP) is expected to be developed by the end of the year, and will increase the DSP’s capacity from 60 000 to 120 000 bpd.
Adapted from press release by Joe Green
Read the article online at: https://www.oilfieldtechnology.com/exploration/08122014/badra-iraq-gazprom-neft-investors-returns-1956/