Iraqi Oil Delivered to Russia’s state-owned oil giant
Gazprom Neft (ticker: GZPFY), the oil arm of Russia’s state-owned Gazprom (ticker: OGZPY), announced today that it has received the first shipment of Kirkuk grade oil from the Iraqi government. The crude oil was given to Gazprom Neft as compensation for the company’s investment in the field’s development, according to the company release.
The first batch of oil from Iraq’s State Oil Marketing Company (SOMO) was 500 MBO, which the company plans to sell to a large unnamed Asian company.
Commercial oil shipments from Badra began in August 2014. By the end of November 2014, the field was producing at a stable rate of 15 MBOPD, allowing investors to start receiving compensation for the costs incurred by developing infrastructure in the field. Oil from Badra will be delivered on a quarterly basis to members of the consortium invested in the field. Each member is responsible for selling its own share of the oil independently.
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