Iraq to hold talks with Gazprom on contract for Nasiriyah project

MOSCOW. Feb 8 (Interfax) - The government of Iraq has decided to invite Russia's Gazprom into the project to develop the Nasiriyah oil field in the southern part of the country, according to a decision by the Council of Ministers that was posted on the Iraqi prime minister's Telegram channel.

Iraq plans to enter into a contract with Gazprom as the sole candidate to carry out the project to comprehensively develop the field. Iraq's Oil Ministry has been tasked with preparing the agreement.

Gazprom's oil subsidiary, Gazprom Neft has been the operator of the Badra project in the Wasit region in eastern Iraq since 2010. Commercial oil shipments from the field began in August 2014. The field's geological oil reserves are estimated at 3 billion barrels. The project to develop the field is intended to last 20 years, with an option for a five-year extension.

Gazprom Neft has a 30% stake in the Badra project, Kogas holds 22.5%, Petronas owns 15% and TPAO holds 7.5%. The Iraqi government, represented by Oil Exploration Company, holds a 25% stake. Gazprom owns more than 95% of shares in Gazprom Neft.