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Gazprom has begun commercial production at the Badra oil field in Iraq, the company has announced.
The energy giant said that the first oil from the field was being transferred to a pipeline and delivered to an export terminal in Basra.
Current deliveries from Badra to the pipeline stand at over 15,000 barrels of oil per day, which is expected to be maintained until the end of 2014.
Gazprom heads up a consortium of companies operating the Badra project, including KOGAS, Petronas, TPAO, and the Iraqi Oil Exploration Company.
“According to the service contract with the Government of Iraq, the consortium of investor companies will begin receiving a share of the oil produced at the field after a period of 90 days following launch of commercial supply,” said Gazprom in a statement.
“The Iraqi State Oil Marketing Organization (SOMO) is responsible for oil sales and each quarter will be delivering a share of oil to the investor companies to reimburse their initial project costs.
“Once these project costs have been covered, the investor companies will receive remuneration in kind for ongoing development at the rate of $5.5 of oil per barrel produced.
“Each investor company will be selling their share of oil independently.”
