Gazprom Neft to boost production in Iraq 60% in 2017
MOSCOW. March 16 (Interfax) - Gazprom Neft will increase hydrocarbon production in Iraq 60% to 1.258 million tonnes of oil equivalent (toe) in 2017, First Deputy CEO Vadim Yakovlev said.
Gazprom Neft, which produces hydrocarbons at the Badra field in Iraq, where it has a 30% interest, will boost production from 776,000 toe (including 772,000 tonnes of oil) in 2016 to 1.258 million toe (1.173 million tonnes).
In April, a gas plant and a gas pipeline to a power plant will be started up at Badra.
In Iraqi Kurdistan, Gazprom Neft will develop the Sarqala field (Garmian block), work to de-mothball the Shakal block and "in addition to other assets, we are evaluating supplementary blocks in the region," Yakovlev said.
"The economics of the project there are much more sensitive to changes in the price situation than in Iraq. Right now we can say with confidence that we will begin developing the Sarqala field. As for the remaining blocks, then everything depends on the results. They remain in the exploration stage," he said.
In May 2016, a subsidiary, Gazprom Neft Middle East, reached agreement with the Kurdistan authorities on the plan for developing Sarqala. That plan stipulates drilling another production well, Sarqala-2, at the field.
The first oil at the Garmian block was produced in 2011 and commercial shipments of crude from the field began in 2015. Gazprom Neft Middle East became the project operator in early 2016. The operatorship was previously held by Canada's WesternZagros Resources Ltd.
In a memorandum, Gazprom Neft parent company Gazprom said that commercial production at the Shakal block in Iraqi Kurdistan would begin in 2018. Production is expected to peak at 2 million tonnes of oil in 2022.
At the little-explored Halabja block, geological study will continue until 2018. Geological exploration might also be extended, until 2020.
Gazprom Neft has 80% stakes in Halabja and Shakal (the remainder is held by the Kurdistan regional government) and a 40% stake in Garmian.