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Iraq Engages Gazprom for Development of Nasiriyah Oil Field

The Iraqi government has decided to engage Russia's Gazprom for the development of the Nasiriyah oil field. This move highlights Gazprom's growing involvement in Iraq's oil sector, following its active participation since 2010.

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Bijay Laxmi
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Iraq Engages Gazprom for Development of Nasiriyah Oil Field

Iraq Engages Gazprom for Development of Nasiriyah Oil Field

In a recent development, the Iraqi government has announced its decision to enlist Russia's Gazprom in the development of the Nasiriyah oil field, located in the southern region of Iraq. The announcement was made via a post on the Iraqi prime minister's Telegram channel, unveiling plans to engage Gazprom as the lone developer for this ambitious project. The task of drafting the agreement for this partnership has been delegated to the Oil Ministry of Iraq.

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Gazprom's Previous Involvement in Iraq

Gazprom Neft, the oil subsidiary of Gazprom, is no stranger to the Iraqi terrain. The company has been actively participating in the country's oil sector since 2010, helming the Badra project in the Wasit region in eastern Iraq. The Badra field, which boasts estimated geological oil reserves of a whopping 3 billion barrels, commenced commercial oil shipments in August 2014. The project has a predicted development lifespan of 20 years, which could further be extended by five years.

Stakeholders in the Badra Project

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Gazprom Neft holds a 30% stake in the Badra project. The other stakeholders include Kogas, which has a 22.5% stake, Petronas, with a 15% stake, and TPAO, with a 7.5% stake. The Iraqi government, through the Oil Exploration Company, also has a substantial 25% share. Gazprom, the parent company, owns over 95% of the shares in Gazprom Neft.

Future Developments for Gazprom in Iraq

With the Iraqi Cabinet's decision to invite Gazprom to develop the Nassiriyah oil field under a single contract, the Russian company's involvement in Iraq is set to expand. The project is being described as an 'integrated development project' and will be offered as a 'single bid'. The Nasiriyah oil field is reported to have reserves estimated at 586 million tons. Gazprom Neft already has a footing in oil production in eastern Iraq and is a participant in oil and gas projects in Iraqi Kurdistan.

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