Gazprom Neft has completed the tendering process for the front end engineering design (FEED) for the Badra oil field in Iraq with the contract being awarded to French Technip. The project preparation is expected to be completed by June 2011.

The tender award decision has also been taken for the road and well site construction, as well as for the construction of a permanent camp. The Iraqi ALMCO was selected as the contractor in both cases. In January 2011, the mobilisation of manpower and equipment was completed, and geological engineering surveys and future roads laying-out were launched.

In accordance with the latest instructions of the Ministry of Oil of the Republic of Iraq, the ITT submissions for well drilling and integrated project management in terms of well construction were delivered to the state Iraqi North Oil Company (NOC) and the Ministry of Oil for approval and declaration of winners. The commencement of works is scheduled for April – May 2011.

The results of the first tenders for the selection of contractors for the commencement of the Badra oil field development were summarised by Gazprom Neft in autumn 2010. Within the framework of the contracts awarded, Arabian Gulf Mine Action Company will perform the mine clearance for 3D seismic and road and well site construction till May 2011. As of the end of January, about 50 per cent of scheduled works have been completed with the quality control provided by the Iraqi TAAZ. Oil Exploration Company (OEC) conducts 3D seismic field works. In 2011 a contractor is to be selected to complete the processing and interpretation of the data received during the seismic surveys by the end of the year.

“The FEED development will allow progression to the next stage of the development of the Badra field that is, to select infrastructure construction contractors so that the production can get started in 2013 as stipulated for by the contract. Iraq is one of the significant regions of presence for Gazprom Neft, and the operations at the Badra field will enable the Company to escalate a major international project management experience”, - Deputy Chairman of Gazprom Neft Executive Board Boris Zilbermints stated.