The company has been forced to reduce its production ceiling in Iraq’s oil field of Badra after it turned out to be more geologically complicated than previously thought, an executive at Gazprom Oil said.
The Badra field began production in 2014 and reached 85,000 bpd.
Initially, a consortium including Gazprom Petroleum, Koreagas (KOGAS), South Korea’s Petronas, the Iraqi Oil Exploration Company and Turkey’s TPAO planned to reach a peak production of 170,000 bpd.
But Denis Sugaypov, head of large projects management at Gazprom Oil, said the consortium had proposed to the Iraqi government to set a production ceiling in the next few years at about 85 thousand barrels per day.
“We now produce 85,000 barrels per day,” he said.
So far, the project has invested $ 4 billion, including $ 1 billion for a gas processing plant. By 2030, the consortium will invest an additional $ 2.5 billion.
Gazprom’s chief executive officer, Vadim Yakovlev, said the Badra field is expected to reach 110,000 bpd in the future.
Iraq has asked foreign producers to cut spending on oil projects to reduce the government’s lack of liquidity in joint ventures. Lukoil has also been forced to cut its production plans there.
Baghdad did not ask Gazprom Oil to cut production.