Gazprom Neft plans launch of fourth well at Sarqala field in H1 2021

Moscow — Russia's Gazprom Neft is planning to launch a fourth well at the Sarqala field in Iraq's semi-autonomous Kurdistan region in the first half of 2021, which will increase production at the project to 32,000 b/d, the company said in a statement Nov. 25.

Drilling of the well has continued this year, despite restrictions due to the coronavirus pandemic.

The three wells already in operation at the field currently produce 24,000 b/d.

Gazprom Neft has produced a total of 32 million barrels at the project since its launch. First oil was produced at Sarqala in 2011 and commercial deliveries began in 2015. A second well was launched in 2018 and a third in 2019.

Gazprom Neft is also planning to utilize associated petroleum gas from Sarqala to provide electricity to several regions in Iraqi Kurdistan. The development program includes construction of a 4.5 km gas pipeline, which will connect the field with power generation facilities.

Gazprom Neft holds 40% in the Garmian block, which contains Sarqala. It has been operator on the project since 2016. The government of the Kurdish Autonomous Region holds 20%, and Canada's WesternZagros the remaining 40%.

Future plans

Deputy General Director for Exploration and Production at Gazprom Neft Vadim Yakovlev said the Middle East remains a zone of strategic interest for the company.

"Today, having created a production base, gained unique experience and formed an understanding of the geological features of the territory, we remain interested in exploring new options for development in the region," Yakovlev said.

Gazprom Neft CEO Alexander Dyukov said previously that the company wanted to increase its presence in Iraq, and sees the Middle East and North Africa as priority regions for expansion abroad.

Gazprom Neft also holds an 80% stake in the Shakal block in the Kurdistan region, with the remaining stake held by the local government.