Despite falling oil prices and Western sanctions against Russia over Ukraine, Gazprom Neft, the oil arm of the Russian gas monopoly, said on May 19 that crude oil production increased year-on-year, largely from the development of Arctic and Iraqi assets.

Despite falling oil prices and Western sanctions against Russia over Ukraine, Gazprom Neft, the oil arm of the Russian gas monopoly, said on May 19 that crude oil production increased year-on-year, largely from the development of Arctic and Iraqi assets.

Gazprom Neft reported a 1.3% decline in year-on-year sales, but a 3.5% rise in net profits. Sales from the fourth quarter were down 14.5% and no quarter-to-quarter figures were published for profits. Year-on-year net hydrocarbon production increased 15.8% to 135.1 million barrels of oil equivalent.

The company attributed the increase in production to the start of the Prirazlomnoye field in the Pechora Sea and at the Badra field in Iraq, as well as increased utilisation of associated petroleum gas and successful implementation of advanced technologies at mature assets.

The company expects 2.2 million barrels worth of production from the Prirazlomnoye field in the Arctic during the firstfull year of development.

In Iraq, the Russian company said a pipeline from the Badra field near the border with Iran was delivering oil at a rate of 15,000 barrels per day. The terms of its Iraqi contract call for the eventual production of 170,000 barrels per day.

A delegation from Gazprom Neft met on May 18 in the Kurdish north of Iraq to discuss oil developments there. The company has said it was ready to survey the reserve potential in the Halabja block in the region, where it said there’s been very little geological study.

http://www.neurope.eu/article/gazprom-neft-ups-production-thanks-to-arctic-iraq/