BAGHDAD has approved a service contract to Petrofac to develop its Badra oilfield in eastern Iraq.

Under the service contract, Petrofac plans to build a major crude processing facility to help production at the field to reach 170,000 bpd in 2017, a target which was set by Iraq's oil ministry.

The Gazprom Neft-led consortium last year started drilling in the field which holds about 3 billion barrels. It plans to drill some 11 wells in the fields in three years.

Gazprom Neft and its partners won the deal in Iraq's second postwar licensing auction held in 2009. The field is located in Wasit governorate, 160 kilometers southeast of Baghdad, and extends across the border with Iran.

The consortium, with Kogas, TPAO, and Malaysia's Petronas, would receive along with its partners a payment of US$5.50 for each barrel extracted from the field as soon as the field reaches output of 15,000 bpd by mid-2013.

Oil News | Middle East

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