In the end of December 2009, Gazprom Neft initialed a contract with Iraqi officials to explore and develop the Badra oilfield. The contract will be finally signed sometime at the beginning of 2010. 

Gazprom Neft was successful in winning the tender for the Badra oilfield. Reserves at the oilfield have been estimated at 2 billion barrels. In addition to Gazprom Neft that holds 30 percent in the venture, the consortium for the development of Badra includes Kogas of South Korea (22.5 percent), Petronas of Malaysia, and TPAO of Turkey. The government of Iraq retained a 25-percent interest in the project.

Other partners agreed to reimburse Gazprom for the development costs. Moreover, the Russian company also stands to receive USD 5.5 for each barrel of oil that is produced. Production at the oilfield is projected to last 20 years. 

Other highlights of Gazprom Neft’s work in the Middle East include negotiations with the National Iranian Oil Company for access to Iran’s market. The Badra oilfield is in close proximity to the border between Iran and Iraq. The National Iranian Oil Company and Gazprom have already inked an MOU for joint collaboration in developing the Shangul and the Azar fields in Iran.