Gazprom group to invest $2bn in Iraq

 A consortium led by the Russian oil firm,  Gazprom Neft, will invest $2 billion in developing the Iraqi oilfield it won at last weekend's oil development auction. Gazprom Neff expects to pump the first crude from Badrah within three years
 
Gazprom plans to book some of the reserves at Badrah and to reach full production of 170,000 barrels per day (bpd) within six to seven years of signing the contract.

[/q]"Two levels of output are defined for this field. We expect to reach initial commercial production of 15,000 bpd in three years," Boris Zilbermints, Gazprom Neft's deputy chief executive for exploration and production, said.
"We should reach the level of 170,000 bpd within six to seven years of signing the contract,"

An Iraqi Oil Ministry official said Iraq expects Gazprom Neft to sign the initial deal on December 24. [/q]
Iraq currently  has deals on the table to raise oil capacity to 12 million bpd from 2.5m bpd. To put this in perspective, this is.a level that would rank Iraqi production second in the world behind only Saudi Arabia, and well ahead of the current second-ranked Russia..

Gazprom Neft consortium partners include South Korean state-run firm Kogas, Malaysia's Petronas and Turkish state-owned petroleum company TPAO. The consortium has agreed to a remuneration fee of $5.50 per barrel in winning the rights to Badrah at the auction.

Gazprom Neft estimates that the reserves of the Badrah field are approximately two billion barrels. This estimate could increase with further exploration,

In return, the consortium would  receive either money or crude oil for its investment.

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