A consortium led by Russia's OAO Gazprom (GAZP.RS) Thursday finalized a deal in Baghdad to develop the Badra oil field in eastern Iraq, Iraqi officials said.
The deal is one of a series of agreements Iraq is finalizing with international oil companies in a bid to transform its dilapidated oil sector and add some 9.5 million barrels a day to the 2.4 million barrels a day the country currently produces.
Gazprom, partnering with Turkish Petroleum Corp., known as TPAO, South Korea's Korea Gas Corp. (036460.SE) and Malaysia's Petronas, won the right to develop the field at an energy auction held in December.
Gazprom owns the largest stake in the venture with 40%, Kogas holds 30%, Petronas owns 20% and TPAO holds 10%.
The consortium will receive a payment fee of $5.50 for each barrel extracted from the field, which holds proven oil reserves of 150 million barrels. They pledged to reach a production plateau of 170,000 barrels a day.
The Badra oil field is situated in Wasit governorate, 160 kilometers southeast of Baghdad, and extends across the border with Iran. It was discovered in 1979 but hasn't been developed since.