Gazprom Neft, Midland Oil hold negotiations on sidelines of Russia-Iraq Intergovernmental Commission

BAGHDAD. Feb 26 (Interfax) - Representatives of Gazprom Neft Badra and Midland Oil Company have held negotiations on the sidelines of the Russia-Iraq Intergovernmental Commission on Trade, Economic, and Scientific-Technical cooperation.

The parties signed a protocol following the meeting. The details of the negotiations have not been disclosed.

Russia's Energy Ministry later said that the delegations during the intergovernmental commission meeting discussed the terms and conditions of the project to develop the Nasiriyah field in the south of the country. The Iraqi government earlier invited Gazprom as the only candidate to implement the project on the terms and conditions of integrated field development.

A memorandum on maritime transport was also signed between the two countries' governments on the sidelines of the commission.

Gazprom Neft has been the operator of the Badra project since 2010. Commercial oil shipments from the field began in August 2014. Badra is located in the Wasit province in eastern Iraq, with geological reserves estimated at 3 billion barrels of oil. The development project is meant to run for 20 years, with a possible extension of five years. Gazprom Neft holds a 30% stake, Kogas - 22.5%, Petronas - 15%, and TPAO - 7.5%. The Iraqi government represented by the Oil Exploration Company holds a 25% stake.

Midland Oil Co. is an Iraqi state-owned oil and gas company overseeing the development of major fields in the central part of the country, including the Mansuriyah gas field near the Iranian border, which was previously of interest to Gazprom Neft. In November last year, the rights to develop the field were granted to a consortium comprising the Chinese oil service company Jereh and the private Iraqi company Petro Iraq.