Gazprom and Badrah, Rosneft and Sevastyanovo

Relations between Iraq and Russia have become even closer with news that Gazprom has signed a deal to develop the country's eastern Badrah oilfield, estimated to hold reserves of 100 million barrels of oil.

The deal also sees Gazprom working with several other oil group on the field including Turkey's TPAO, who own 10 percent, South Korea's Kogas (30 percent) and Malaysia's Petronas (20 percent).

The companies will develop the field in in Wasit province for US$5.50 for each barrel produced. The deal is among seven awarded during Iraq's second postwar bidding that occurred in December.

High investment

While Gazprom's investment in the filed in not yet known, Kogas revealed that they will be investing US$1.05 billion in the development as part of national drive to invest a record US$12 billion in overseas energy and resources assets this year. The Korean company has also invested US$6.5 billion in the development of the Zubair oilfield in Iraq.

Meanwhile... somewhere in Siberia

While it may be profitable times in Iraq, Rosneft also seems to have struck pay-dirt in Siberia with the discovery of a field that could potentially add 4 percent to the company's proven and probable reserves.

According to Rosneft spokesman Nikolai Manvelov, the Sevastyanovo deposit could hold more than 1.2 billion barrels of crude which equates to approximately 30 percent of the company's entire production last year.

Meanwhile Natural Resources Minister Yuri Trutnev announced on the government website that, "We can report today on the opening of the Sevastyanovo deposit, with reserves of more than 1.2 billion barrels. This is a strategic deposit," Trutnev said. He did not say when production might potentially begin at the deposit.

Russia deems oil deposits to be strategic if their reserves exceed 553 million barrels. Their development by a foreign company requires special governmental approval, however Rosneft purchased the field in 2006 so one can expect that they will be taking the lead of such projects.

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