Russian oil company reached Iraqi production milestone

March 28 (UPI) -- Russian oil company Gazprom Neft said it passed a milestone with operations in Iraq by passing the 5 million barrel mark for cumulative production in 2017.

The company said it commissioned four wells at the Badra oil field so far this year, bringing the combined total to 14 wells at the field. Total daily production has increased to 80,000 barrels and total output so far this year is in excess of 5 million barrels.

"The Badra project is going according to plan, and it's clear that the infrastructure necessary for increasing oil production is already in place," project director Denis Sugaipov said in a statement.

The company, the oil arm of Russian gas company Gazprom, brought Badra online in late 2013 and tested new pipeline infrastructure to the export terminal at Basra one year later. The terms of its Iraqi contract call for the eventual production of 170,000 barrels per day.

Gazprom Neft estimates Badra holds around 3 billion barrels of oil in place.

The production announcement follows a weekend meeting from members of the Organization of Petroleum Exporting Countries and non-member states in Kuwait to consider extensions to an agreement to limit output in an effort to balance a global market favoring the supply side.

Iraq is an OPEC member that initially balked at the agreement. Russia is the largest contributor to the agreement among non-member states and its compliance has come under scrutiny.

Badra is Gazprom Neft's first project outside of Russia.