Russian oil company Gazprom Neft said nearly half of the total production from an eastern Iraqi oil field came online this year. Photo courtesy of Gazprom Neft
KUT, Iraq, July 25 (UPI) -- Production momentum at the Badra oil field in eastern Iraq has resulted in almost half of the total volumes emerging this year, Russian company Gazprom Neft said.
Gazprom Neft said its Iraqi subsidiary commissioned its 10th production well at the Badra oil field in Wasit province in eastern Iraq, near the border with Iran.
"With production volumes at the newly launched well now at 6,527 barrels per day, its commissioning has allowed daily production levels at the field to reach 67,000 barrels," the company said in a statement.
Total production at Badra now stands at 2.9 million barrels of oil, the company said, with almost half of that coming online since the start of 2016. An additional four wells are in the planning stages with completions expected by early next year.
Gazprom Neft estimates Badra holds around 3 billion barrels of oil in place.
The Russian company's trends contrast with other oil developments in Iraq. According to the Organization of Petroleum Exporting Countries, of which Iraq is a member, crude oil production dropped 1.3 percent from May to June.
Iraq this year called on international oil companies from BP to Exxon Mobil to cut their investment plans for the country in order to clear debt. This has a spillover affect, however, as it reduces oil-generated revenue in the Iraqi budget, which in turn starves the country of the funds needed to support military operations against the Islamic State terrorist group.
Wasit province is far from conflict that's been centered in Sunni-dominated western parts of Iraq.
The company, the oil arm of Russian gas company Gazprom, brought Badra online in late 2013 and testing of new pipeline infrastructure to the export terminal at Basra began one year later.
The Russian company said the terms of its Iraqi contract call for the eventual production of 170,000 barrels per day.