Iraq, Gazprom Group Signs Deal

BAGHDAD - Iraq signed a final deal with a group led by Russia’s Gazprom on Thursday to develop its eastern Badrah oilfield with estimated reserves of 100 million barrels of oil.

By (Reuters)

Published: Fri 29 Jan 2010, 11:33 PM

Last updated: Mon 6 Apr 2015, 10:29 AM

Gazprom is teaming up with Turkey’s TPAO, Korea’s Kogas and Malaysia’s Petronas for the field, which is near Iraq’s border with neighbouring Iran. The consortium will invest a total of $3.52 billion to pump 170,000 barrels of oil per day (bpd) from Badrah, KOGAS said in a statement. Kogas said it would invest 1.05 billion into the project.

The group agreed to a $5.50 per barrel fee at Iraq’s second oilfield auction in December. Gazprom owns 40 per cent of the venture. Kogas holds 30 per cent, Petronas 20 per cent and TPAO has a 10 per cent stake. Badrah oil has an API gravity of 31.5 degrees.

Deals coming from two oilfield auctions this year may raise Iraqi oil output capacity in seven years to 12 million bpd from the current 2.5 million bpd.

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