Oil companies from emerging countries, led by South Korean KOGAS and Russian Gazprom, begin crude oil production in Iraq’s Badra oilfield.
Early on Monday (September 1) the state-run Korean Gas Corp announced that operations in Badra have begun in a bid to raise output from the current 15,000 barrels a day to 170,000bpd within three years.
The Badra onshore plant is owned by Gazprom (30 per cent), KOGAS (22 per cent), Malaysia’s Petronas (15 per cent) and Turkey’s TPAO (7.5 per cent), while the Iraqi government has retained a 25 per cent stake in the oilfield. As part of the agreement, the foreign companies will invest $2 billion in order to boost production.
Having applied and won the tenders for the Badra Oilfield, petrochemical companies from emerging markets have shown they are eager to invest in Iraq’s energy sector, which has been recently underperforming due to the ongoing security turmoil.
Namely, as a result of the ISIS uprising, which has spread across the west of Iraq, as well as Syria, oil output in July dipped to 3.1 million bpd, from a high of 3.6m bpd in February. However, authorities hope to almost triple production to 9m bpd by 2020.
With security threats in Iraq increasing each day, the authorities and foreign companies will be hoping that hostilities in one of the world’s biggest oil producers de-escalate soon. Moreover, however, they will be eager to ensure that tensions do not spread to the southeast of the country where vast oil reserves, including Badra and West Qurna, are located.
Monday, September 1- 2014 @ 16:26 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.