Russia’s Gazprom Neft has launched the commercial operation of a 1.6 billion cubic metres capacity gas processing plant at its Badra field, Iraq.

Alexander Novak, Minister of Energy of the Russian Federation, was present at the opening ceremony for the new facility, together with the Minister of Oil of the Republic of Iraq, Jabbar al-Luaibi, and Gazprom Neft CEO Alexander Dyukov.

Dry feed gas, processed at the Badra field, is transported via a 100-kilometre pipeline to the Az-Zubaidiya power station, supplying electric power not just to provinces throughout Iraq, but also to the capital city of Bagdad.

In addition to this, gas will be used to meet the Badra project’s own needs as fuel for the gas-turbine power plant. Five gas turbines are able to produce a total 123.5 MW of electric power, supplying oil and gas processing facilities, drilling rigs and oil-producing wells. A 10-MW overhead power line will soon begin feeding into the Gazprom Neft Badra accommodation complex, as well as into the town of Badra and neighbouring population centres.

Natural gas liquids (NGLs) produced at the Badra project’s gas processing plant will be used to produce LPG to be supplied to the Iraqi state-owned Gas Filling Company. The plant also includes facilities for sulphur production and granulation.

Alexander Dyukov, Gazprom Neft CEO, made the following comment at the official opening ceremony of the gas plant:

Gazprom Neft is continuing its development of the Badra field, in strict adherence to the field development plan. Today sees the full-cycle gas plant — built by our company using the most cutting-edge technologies available on the world market — going into commercial production.

“This is a unique enterprise for the region, at which Gazprom Neft has, since starting work, been able to monetize all of the hydrocarbons produced here, ensuring associated-petroleum-gas (APG) utilisation of at least 95 percent.

(Source: Gazprom Neft)

By John Lee.

Russia’s Gazprom Neft has said it expects production at the Badra oilfield to stay between 85,000 and 90,000 barrels per day (bpd) in 2018.

Deputy chief executive Vadim Yakovlev (pictured) told Reuters that Baghdad has not asked the company to curtail production, despite reports that the Oil Ministry had asked foreign producers to cut investment to reduce the cash-strapped government’s contribution in shared ventures.

Yakovlev added that production at Badra is expected to plateau as high as 110,000 bpd in the future.

(Source: Reuters)

Petrofac has secured a three-year master services agreement (MSA) to support Gazprom Neft Middle East B.V. with the provision of engineering services on a call-off basis for the Garmian field in the Kurdistan region of Iraq.

The MSA was secured following a competitive tendering process and augments Petrofac’s extensive footprint in Iraq, where it has been providing engineering, operations, maintenance and training services since 2010.

Gazprom Neft has been Operator of the Garmian field since early 2016. Through the provision of engineering services Petrofac aims to support the planned brownfield works to debottleneck and expand the Central Processing Facility (CPF).

Steve Webber, Senior Vice President, Petrofac Engineering & Production Services, East said:

We are delighted Gazprom Neft has selected Petrofac as one of its key suppliers in support of the Garmian field CPF upgrade project.

“We have been working with this key client in Iraq for more than three years and hope to take this opportunity to build on our relationship through the demonstration of Petrofac’s fit-for-purpose and value-driven engineering solutions in the Kurdistan region.

(Source: Petrofac)

Gazprom Neft Badra, operator of the Badra field, has undertaken the largest ever maritime shipment of oil for export in the company’s history, with 1.78 million barrels of hydrocarbons being despatched for the United States in the New Solution crude oil tanker.

This is, to date, the second oil consignment to the American market by Gazprom Neft Badra — recipients of the preceding 12 shipments having been European companies and refining facilities in the Asia—Pacific region.

Hydrocarbon exports from Iraq by Gazprom Neft are delivered by the State Oil Marketing Company (SOMO) and comprise the cost-recovery component of Gazprom Neft’s development of Badra field.

(Source: Gazprom Neft)

By John Lee.

Russia’s Gazprom Neft has reportedly started production of liquid petroleum gas (LPG) at its Badra field in Wasit Province.

According to Energy Business Review, the company has started trial shipments of LPG to Iraq’s state-owned gas filling company, and to the Az-Zubaydiyah power station.

The facility is expected to be operation in the fourth quarter of this year.

(Source: Energy Business Review)

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Jabbar al-Luaibi, Minister of Oil of the Republic of Iraq, took place in St. Petersburg today.

The parties discussed the Badra project, which is implemented in Iraq by Gazprom Neft. Currently, the Badra field produces as much as 77,000 barrels of oil per day.

Gazprom Neft continues to construct oil and gas infrastructure, with start-up underway for a comprehensive gas treatment unit. The first and second trains of the project will go into operation in the 2nd and 3rd quarters of 2017, respectively.

Gazprom Neft is a vertically integrated oil company focused on oil & gas field exploration and development, oil refining, and petroleum product processing and marketing. The company’s largest shareholder is Gazprom (95.68 per cent); the rest of its shares are in circulation.

On May 31, 2014, Gazprom Neft started developing the Badra field located in the Wasit Province in the eastern part of Iraq. According to estimates, Badra holds 3 billion barrels of oil.

In January 2010, the consortium of Gazprom Neft, Kogas (Korea), Petronas (Malaysia), and TPAO (Turkey) signed a contract with the Iraqi Government for the development of the Badra field following a competitive tender. Gazprom Neft, as the project operator, holds a 30 per cent stake in the project, Kogas – 22.5 per cent, Petronas – 15 per cent, and TPAO – 7.5 per cent.

The Iraqi Government represented in the project by the Iraqi Oil Exploration Company (OEC) holds a 25 per cent stake. The Badra development project’s lifecycle is 20 years, with a possible five-year extension.

The cumulative oil production from Badra is in excess of 5 million tons.

Gazprom Neft allocated USD 10 million for social projects in the Wasit Province. The funds were used to build three schools, purchase computer equipment and school supplies, buy two minibuses for the University of Wasit, renovate and expand power grids in the neighboring population centers, provide local hospitals with medical equipment, and buy two ambulances.

At present, over 3,000 Iraqi citizens work at the Badra field. Gazprom Neft spent upward of USD 12 million on training programs for those workers.

(Source: Gazprom)

By John Lee.

KRG Prime Minister Nechirvan Barzani and his accompanying delegation have met with the head of Gazprom Neft, Alexander Dukov, in St Petersburg. 

Dukov briefed the Prime Minister about the company’s work and activites of the region, while Barzani thanked him for his support for the region in difficult times.

(Source: KRG)

WesternZagros Resources has announced that the operator, Gazprom Neft Middle East B.V. (“Gazprom Neft”), has successfully performed an acid stimulation on the Sarqala-1 well located on the Garmian Block in the Kurdistan Region of Iraq in order to increase the well productivity.

The acid stimulation was completed on March 31, 2017 and Sarqala-1 is currently producing at a stabilized rate of 7,100 barrels per day (“bbl/d”) which is close to the limit of the surface equipment in its current configuration. This flow is being achieved on a 48/64 inch choke with a wellhead pressure of 5,800 pounds per square inch (“psi”) and with reservoir drawdown of only 220 psi.

This compared to a pre-stimulation flow of approximately 5,000 bbl/d on a 40/64 inch choke with a well head pressure of 4,150 psi and a reservoir drawdown of 2,150 psi. The current results represent a 42 percent increase in production rates. There continues to be no formation water produced. Further significant production increases are anticipated once the configuration of the surface equipment has been optimized.

Simon Hatfield, Chief Executive Officer of WesternZagros, commented:

These excellent results, combined with the significant increase in Garmian Reserves that we announced at year-end, reinforce our confidence in the quality of our Garmian Block.

“We congratulate Gazprom Neft on the results of the acid stimulation and will continue to work with them to optimize production. The enhanced deliverability from Sarqala-1, driven by the high-pressured Jeribe / Upper Dhiban reservoir, provides us with greater confidence in the production potential for future development wells.

The Company’s calculations indicate the productivity index (“PI”) of Sarqala-1 has increased by an order of magnitude. The PI is a measure of the well’s potential to produce – it is the ratio of the production rate to the pressure drawdown at the reservoir. This substantial increase in PI anticipates further production gains as the Operator continues to optimize the surface facilities.

The Company will continue to monitor the increase in production rates and pressures and once sufficient data is obtained to demonstrate sustainability the Company will work with its independent auditors on the potential for a further increase to its reserves and their valuation.

(Source: WesternZagros Resources)

Gazprom Neft Badra, a subsidiary of Russia’s Gazprom Neft, has produced the five-millionth tonne of oil at its Badra oil field.

Thanks to the application of cutting-edge production and transportation technologies, this outcome has been achieved in just over two and a half years’ of commercial production. Total cumulative oil production since the start of 2017 is now in excess of 679,000 tonnes (five million barrels).

Four wells, with a total production rate of 27,000 barrels per day, have been commissioned at the field in 2017, bringing the total number of production wells at the field to 14, with total daily production increasing to 80,000 barrels. All wells are operating under free-flow production.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure. Pre-commissioning works are currently ongoing at the field’s gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 2Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

“The Badra project is going according to plan, and it’s clear that the infrastructure necessary for increasing oil production is already in place. Badra is Gazprom Neft’s first project abroad, and one of our most successful major projects. Field infrastructure continues to expand, and is, already, now a major production complex, unique to the region.”

(Source: Gazprom Neft)

Gazprom Neft Badra — a subsidiary of Russia’s Gazprom Neft — has commissioned three new production wells (BD-2, P-14 and P-10) at the Badra field in Iraq. Total production across all three wells is running at 23,000 barrels per day, with daily production at the field totalling 77,000 barrels. All three wells are operating under free-flow production.

Gazprom Neft commissioned four new wells at the Badra field in 2016, producing a total 30,500 barrels per day. Completion of well P-19 (running to a depth of 4,945 metres, and drilled in 216 days — a record at the Badra field) is currently ongoing, with the well expected to be commissioned in early March.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure.

Pre-commissioning works are currently ongoing at the gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 1Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

Establishing cutting-edge high-technology production facilities at the Badra field is an essential precondition in effective asset development. Thanks to close collaboration with local and national government, Gazprom Neft has been given a unique opportunity in the Wassit Province to implement project for the fully integrated development of the territory, including not just oil production facilities but also the gas and energy infrastructure the region needs.

“The latest drilling and production technologies are being fine-tuned at the Badra field, and our company is acquiring invaluable experience in collaborating with those contractors recognised as leading the global oil and gas industry.

(Source: Gazprom Neft)