Russia


Five-millionth tonne of Oil Produced at Badra

Gazprom Neft Badra, a subsidiary of Russia’s Gazprom Neft, has produced the five-millionth tonne of oil at its Badra oil field.

Thanks to the application of cutting-edge production and transportation technologies, this outcome has been achieved in just over two and a half years’ of commercial production. Total cumulative oil production since the start of 2017 is now in excess of 679,000 tonnes (five million barrels).

Four wells, with a total production rate of 27,000 barrels per day, have been commissioned at the field in 2017, bringing the total number of production wells at the field to 14, with total daily production increasing to 80,000 barrels. All wells are operating under free-flow production.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure. Pre-commissioning works are currently ongoing at the field’s gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 2Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

“The Badra project is going according to plan, and it’s clear that the infrastructure necessary for increasing oil production is already in place. Badra is Gazprom Neft’s first project abroad, and one of our most successful major projects. Field infrastructure continues to expand, and is, already, now a major production complex, unique to the region.”

(Source: Gazprom Neft)

Gazprom Commissions three New Wells at Badra

Gazprom Neft Badra — a subsidiary of Russia’s Gazprom Neft — has commissioned three new production wells (BD-2, P-14 and P-10) at the Badra field in Iraq. Total production across all three wells is running at 23,000 barrels per day, with daily production at the field totalling 77,000 barrels. All three wells are operating under free-flow production.

Gazprom Neft commissioned four new wells at the Badra field in 2016, producing a total 30,500 barrels per day. Completion of well P-19 (running to a depth of 4,945 metres, and drilled in 216 days — a record at the Badra field) is currently ongoing, with the well expected to be commissioned in early March.

Pursuant to the agreed field development programme, Gazprom Neft is continuing the construction of oil and gas infrastructure.

Pre-commissioning works are currently ongoing at the gas treatment plant, with piping connections being installed, as well as electrical fixtures and automatic control systems. The first stage of this project will be commissioned in 1Q2017 and the second in 3Q2017.

Denis Sugaipov, Director of Major Projects, Gazprom Neft, commented:

Establishing cutting-edge high-technology production facilities at the Badra field is an essential precondition in effective asset development. Thanks to close collaboration with local and national government, Gazprom Neft has been given a unique opportunity in the Wassit Province to implement project for the fully integrated development of the territory, including not just oil production facilities but also the gas and energy infrastructure the region needs.

“The latest drilling and production technologies are being fine-tuned at the Badra field, and our company is acquiring invaluable experience in collaborating with those contractors recognised as leading the global oil and gas industry.

(Source: Gazprom Neft)

Lukoil to Increase Production at West Qurna

By John Lee.

Russia’s Lukoil is looking at different ways to increase oil production at West Qurna-2 from the current level of 400,000 barrels per day to 1.2 million bpd.

The company’s vice president in the region, Gati Al Jebouri [Gati Saadi Al-Jebouri] (pictured), told Gulf News:

“Going forward, we are in discussions with Iraqi authorities on how we can develop the second phase of West Qurna-2 and depending on those discussions we will determine how much investment is necessary to reach 1.2 million barrels per day of production.”

(Source: GulfNews)

Oil Discovered at Block 10

By John Lee.

Russia’s Lukoil and Japan’s Inpex have successfully completed the testing of the first exploratory well, Eridu 1, at Block 10 in Basra governorate.

The well recorded a daily flow rate of more than 1,000 cubic meters of sweet oil from Mishrif horizon, confirming geological expectations of a large hydrocarbon field presence within the Block 10 contract area.

Geological exploration at the block is in progress: work program for 2017 includes the drilling and testing of an appraisal well Eridu 2.

Lukoil has a 60-percent stake in Block 10, with Inpex owning 40 percent.

(Sources: Lukoil, Inpex, Ministry of Oil)

(Picture: Seismic study at Block 10)

Rosneft and KRG sign Oil Deal

Russia’s Rosneft and the Kurdistan Regional Government of Iraq signed a Cooperation Agreement in the fields of upstream, infrastructure, logistics and trading. The document was signed on the sidelines of the IP week conference in London.

Pursuant to the Cooperation Agreement the parties signed a pre-financed Crude Oil Purchase and Sale Contract of Kurdistan Region Crude oil over the period 2017-2019. The purchaser of crude will be Rosneft’s trading arm – Rosneft Trading SA.

Commenting on the deal Rosneft Chief executive officer Igor Sechin (pictured) said:

“We are delighted to be embarking on new activity together in the Kurdistan Region and look forward to developing new markets worldwide for Kurdish crude oil. The off-take and supply of Kurdish crude oil into Rosneft’s expanding worldwide refining system will further contribute to the increase in its effectiveness”.

His Excellency Minister of Natural Resources in the Kurdistan Regional Government of Iraq Dr. Ashti Hawrami stated that:

“This deal represents a new beginning in our relationship with Rosneft and opens up the possibility of a broader relationship in all fields of energy cooperation with Russian Oil company Rosneft within Kurdistan”.

(Source: Rosneft)

Rosneft Starts Drilling at Block 12

Russia’s Rosneft group has started drilling its first exploration well at Block 12 in Iraq.

The Salman-1 well will be drilled to the measured depth of 4,245 m through Kurra Chine target horizon to be followed by further testing of five prospective targets. The Company plans to complete drilling in July 2017.

Company of Rosneft group acts as the operator of the exploration and development of Block 12. China-based company Zhongman Petroleum and Natural Gas Group (ZPEC) is the general drilling contractor .

Iraq has huge proved and undeveloped oil resources. Exploration in Iraq is an important step in implementing the Rosneft strategy to expand competences in the area of hydrocarbon exploration and production outside of Russia.

The prospective oil-bearing Block 12 is located in the Najaf and Muthanna provinces, approximately 80 km to the southwest of the city of Samawa and 130 km to the west of the city of Nasriya. The block is a part of the Western Desert, an unexplored region having the biggest oil potential in Iraq. It has an area of 7,680 sq km. Exploration works on Block 12 are considered “low risk” due to its prospects.

(Source: Rosneft)

Lukoil updates on West Qurna-2

By John Lee.

In its third-quarter and nine-month results announced on Monday, Russia’s Lukoil reports that its capital expenditures for the first nine months of 2016 were 19.1 percent lower than in the corresponding period of 2015.

This decrease partly attributed to moving to the maintenance oil production stage at the West Qurna-2 project in Iraq.

But the company’s results were also impacted by a decrease in the compensation amount from West Qurna-2

(Source: Lukoil)

Oil Minister meets with Gazprom Boss

By John Lee.

Iraqi oil minister Jabar Ali al-Luaibi [Allibi] met with the CEO of Gazprom, Alexander Dukove, and his entourage and discussed with him mutual cooperation and the development of the oil industry in Iraq.

The minister said it is necessary to increase oil and gas production at Badra oil field, and praised the efforts of the Russian company.

(Source: Ministry of Oil)

New Oil Bidding Round Postponed to Mid-2017

By John Lee.

The Ministry of Oil is to postpone a bidding round for 12 small- and medium-sized oil fields, following criticism of the plans by experts including IBN Expert Blogger Ahmed Mousa Jiyad.

In a statement, the Ministry’s Petroleum Contracts and Licensing Directorate (PCLD) said:

Following to the previous Ministry of Oil Announcement dated 23rd October 2016 concerning its intention to lunch a Project for the development and production for number of medium and small oil fields that exist in governorate of Basra, Missan and Middle of Iraq. 

“Ministry of Oil announces that there are essential changes in the previous announcement, where some of the fields mentioned in the said announcement will be developed by the national efforts of Ministry of Oil, in addition to new fields will be added to this Project.

“Therefore, Ministry of Oil will iterate its announcement of this Project by mid-2017.

Ahmed Mousa Jiyad welcomed the announcement, commenting:

“For the time being this is a step in the right direction and the Ministry deserves all supportive efforts to remain on and pursue the right direction”.

A more detailed statement from Mr Jiyad can be read here.

The ministry had pre-qualified 19 international bidders to develop the fields.

(Source: Ministry of Oil)