Gazprom Neft Middle East agrees development plan for Garmian field with Kurdistan Regional Government

Gazprom Neft Middle East, a subsidiary of Gazprom Neft, has agreed a development plan for the Sarqala field, Garmian block, with the Government of the Kurdistan Region of Iraq (KRI). Pursuant to the agreed plan, Gazprom Neft Middle East is to begin drilling a further production well, Sarqala-2, which — on the basis of seismic data — is expected to confirm the prognosis of the extent of the fracture zone. Data on the Sarqala-2 well will be used to fine-tune the geological model and allow decisions to be taken on pre-drilling studies (“rigging up”) for remaining wells.

First oil from the Garmian block was obtained in 2011, with commercial crude shipments from the field commencing as early as 2015. Total cumulative production as at 30 May 2016 stood at three million barrels of oil.

Gazprom Neft Middle East assumed operatorship of the Sarqala field (Garmian block) in early 2016 pursuant to a production sharing agreement (PSA) signed in 2012, the previous operator having been Canada’s Western Zagros Resources Ltd.


Gazprom Neft is currently involved in three projects in the Republic of Iraq, two of which are located in the Kurdistan Region.

Gazprom Neft Middle East has interests in the Garmian and Shakal blocks, holding an 80-percent interest in the Shakal field (the remainder being held by the Kurdistan Regional Government). Two exploration wells have now been drilled at the Shakal block, with additional 3D seismic investigations now completed, and analysis and interpretation of the data obtained now coming to completion. Preparations are underway for a workover of the Shakal-1 well.

Gazprom Neft’s interest in the Garmian block stands at 40 percent. The Sarqala field at the Garmian block was commissioned in May 2016 and oil production commenced.

Gazprom Neft’s third project in Iraq concerns the development of the Badra field, located in the Wassit province, in the east of the country. Preliminary investigations suggest reserves at the Badra field could total as much as three billion barrels of oil. Gazprom Neft is operator on this project, with a 30-percent interest. Commercial production at the Badra field commenced in August 2014.

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