Gazprom and partners to invest further $2.5bn in Iraq oilfield project

Russia also says it is satisfied with its cooperation with Iraq under the global oil production cut deal

Russian energy firm an others to boost investment in the Badra oilfield in Kut province, Iraq. Thaier Al Sudani/Reuters

Russia's Gazprom Neft and its partners developing the Badra oilfield in Iraq plan to invest a further US$2.5 billion in the project until 2030, the Gazprom Neft chief executive Alexander Dyukov said on Wednesday.

So far, investments by an international consortium which includes Gazprom Neft, South Korea's Kogas, Malaysia's Petronas, and Turkey's TPAO, have amounted to $4bn. Gazprom Neft is the project operator.

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The oilfield is now producing 85,000 barrels per day, the Iraqi oil minister Jabar Al Luaibi said.

Its associated gas plant would increase output to 50 million cubic feet (mcf)/day in the first quarter of 2018, up from 35 mcf/day now, he added.

Iraq could import natural gas from Iran to be processed at the Badra gas facility, Mr Al Luaibi said.

Separately, Russia is satisfied with its cooperation with Iraq under the global oil production cut deal, the Russian energy minister Alexander Novak said on Wednesday.

Iraq is Opec's second-largest producer after Saudi Arabia with an output capacity of 4.8 million barrels per day (bpd) which Baghdad aims to increase to 5 million bpd.

Iraq was pumping an average of 4.33 million bpd in November under the global oil production cut deal led by Saudi Arabia and Russia. Last week, the deal was agreed to be extended to the end of 2018.