Gazprom Neft continues to be interested in new projects in Iraqi Kurdistan. In particular, the company is exploring the possibility of participating in a tender for the Topkhana field, Sergei Petrov, General-Director of Gazpromneft Middle East, told TASS.
"In case the Topkhana field is put out to tender, we will consider the possibility to participate in it. We maintain our interest in the project. It is important to understand the conditions under which it can be realized", he said.
Petrov said that Topkhana, unlike Sarkala, is a gas and oil block, so the evaluation of its economy will also take into account the potential of gas, which is also of interest to business. The fact is that the regional government has a gas strategy and intends to actively use this type of hydrocarbon as fuel for energy centers, he said.
Gazpromneft Middle East is also working on other options to expand operations in the region. "We are constantly looking for new opportunities, new projects. We have two options: to enter new projects as an operator, and the second option is through technological partnerships," Petrov said. This is a common strategy for Gazprom Neft to promote Russian technologies, competencies and services in foreign markets with their subsequent monetization.
According to the CEO, the Middle East has always been considered quite a difficult and risky region for business. However, Gazprom Neft's bet on Iraqi Kurdistan justifies itself. The project brings profits comparable with some production projects in Russia. The company gains new opportunities and enhances its image on the international arena.
Gazprom Neft is implementing the Sarkala project in cooperation with the Canadian WesternZagros Resources, which owns 40%, and the government of Iraqi Kurdistan, which owns 20% of the project. The share of the Russian company is 40%. The annual production of Gazpromneft Middle East, which is developing the Sarkala field, was 1.2 million tons (9.3 million barrels) of oil in 2020. The asset's oil reserves exceed 93 million tons.
GSV "Russia - Islamic World"
Photo: Creative Commons
Based on materials from TASS