Gazprom Neft Middle East B.V. is a Dutch-registered organization within the Gazprom Group, with its core activities focused on oil and gas upstream and marketing operations in Iraq.
It holds operatorship of the Sarqala field, situated within the Garmian area, where activities are conducted under the framework of a Production Sharing Contract (PSC) with the regional government. Established as a subsidiary of Gazprom Neft PJSC, the entity was removed from its perimeter in 2025.
Gazprom Neft Middle East B.V. governance structure
Based on information available from official corporate registries, as of 2026 Gazprom Neft Middle East B.V. is owned by West Asia LLC. Registry data also indicates that West Asia LLC is embedded within the corporate structure of PJSC Gazprom via a sequence of subsidiary entities.
At the same time, prior to February 2025, the ownership chain included PJSC Gazprom Neft, but it ceased to act as the controlling entity of due to a series of corporate restructuring measures within the Gazprom Group. The corporate structure as of 2026 is as follows:
Gazprom Neft Middle East: core asset portfolio
The Garmian project represents the sole producing asset of Gazprom Neft Middle East B.V. Activities are concentrated at the Sarqala field in accordance with a Production Sharing Contract which the company joined in July 2012.
Gazprom Neft Middle East B.V. and WesternZagros Limited each hold a 40% participating interest, with the remaining 20% allocated to the Kurdistan Regional Government (KRG).
Financial obligations are distributed between the two contractor parties on an equal basis, with each party bearing 50% of the total project costs. The KRG performs the role of the state authority responsible for ensuring public ownership of subsoil resources developed with the participation of international operators.
Features of oil production in Iraqi Kurdistan
The region where Gazprom Neft Middle East B.V. conducts its operations is a significant hydrocarbon-bearing area in the Middle East. Large-scale oil discoveries date back to 1927, when the Kirkuk field was identified, marking one of the earliest major oil developments in Iraq. Subsequent exploration confirmed the presence of substantial oil reserves across additional parts of the region.
From a resource and geological perspective, the region is characterized by considerable reserves, estimated at tens of billions of barrels. Several fields feature relatively shallow reservoirs and natural surface seepages, which have facilitated exploration and reduced initial discovery costs compared to more complex geological environments.
Key features of oil production here include:
? a substantial resource base with ongoing exploration potential
? relatively favorable geological conditions for extraction
? limited infrastructure and reliance on export pipelines
? variability in production levels due to operational and external constraints
Oil production in Iraqi Kurdistan is also associated with technical and logistical challenges. The region is landlocked, and crude exports depend on pipeline systems that pass through neighboring countries, increasing the importance of transport reliability. In addition, discrepancies between initial reserve estimates and actual field performance have been observed in some cases, influencing project planning and development timelines. This was observed at the Shakal and Halabja blocks, where Gazprom Neft Middle East B.V. carried out initial exploration activities.
Field Overview: subsurface characteristics and infrastructure
Production facilities of Gazprom Neft Middle East B.V.
The Sarqala field was initially discovered by drilling of the Sarqala?1 exploration well. Testing of the well confirmed the presence of moveable light oil, establishing the area's commercial potential and ultimately leading to the signing of the PS? in 2011.
The Sarqala structure, currently operated by Gazprom Neft Middle East B.V., is located within the Zagros Fold and Thrust Belt. This region is known for heavy warping of rock layers and a dense web of fault lines. Reservoir sections consist of carbonate formations with variable properties. Crude oil produced by Gazprom Neft Middle East B.V. at the field is classified as light and sweet, with an API gravity of approximately 40, and characterised by low sulphur content.
As of 2026, the field infrastructure operated by Gazprom Neft Middle East B.V. comprises a set of facilities designed to support continuous extraction and preparation of hydrocarbons for transportation. The main components of this infrastructure include:
? four producing wells that ensure stable crude oil output from the reservoir;
? a central processing facility to which all produced fluids are directed from the wells for primary handling and treatment;
? separation units at the processing facility, where the production stream is divided into oil and gas;
'stabilisation equipment used to prepare crude oil to meet pipeline transportation specifications following the separation process.
During the initial phase of field development, associated gas was directed to the flare system for disposal. From 2022 onwards, this gas stream has been utilised and supplied to a nearby power station for electricity generation.
Oil sales and logistics
The mechanism of disposal by Gazprom Neft Middle East B.V. of its share of the crude oil established under the project's PSC has undergone a series of adjustments between the signing of the PSC and 2026, driven by events outside the operator's control.
Initially, the parties? entitlements and responsibilities in relation to crude offtake were regulated under a dedicated lifting agreement. Under this arrangement, the regional authorities, represented by the Ministry of Natural Resources, acted as the counterparty purchasing the contractors? respective shares of production, including those attributable to Gazprom Neft Middle East.
The suspension of the Iraq?Turkey pipeline in March 2023 halted the main export route following a federal requirement to channel all exports through the central system.
In February 2025, budget amendments introduced a /bbl compensation mechanism for international operators, including Gazprom Neft Middle East B.V., and settled arrangements between Baghdad and Erbil. From that point, all produced crude was to be transferred through the State Oil Marketing Organization.
The document further established provisions for the appointment of an independent auditor responsible for reviewing and verifying relevant costs, with the objective of ensuring transparency and consistency in costs assessment. The legislative changes were formally published in the Iraqi Gazette, the official journal used for the promulgation of laws and regulations.
Milestones of the Sarqala field development
? 2011: A PSC covering the Garmian block was concluded and signed for an initial term extending to 2033, with an option for a five-year extension.
? 2012: Gazprom Neft Middle East B.V. joined the project.
? 2014: Completion of a workover at the Sarqala1 well aimed at increasing well productivity.
? 2016: The operational control was transferred to Gazprom Neft Middle East B.V. from WesternZagros Limited.
? 2020: Annual production volume reached 1.2 million tonnes.
? 2021: Launch of gas-gathering infrastructure to supply associated gas to a newly constructed 165 MW power plant built under the direction of local authorities.
? 2023: Crude oil exports through the Kirkuk?Ceyhan pipeline were halted following a legal ruling in favor of Iraq in arbitration proceedings against Turkey, ongoing since 2014 and related to oil exports from Kurdistan. Baghdad's position was that BOTA? (Turkey's state-owned oil and gas company) had facilitated exports without federal authorization.
? 2025: The outstanding issues related to oil exports were resolved, and a revised settlement and a new payment mechanism were introduced.
Other projects
Gazprom Neft Middle East B.V. held interests in other production sharing contracts in Iraqi Kurdistan. In 2012, it became a party to two PSCs for the Shakal and Halabja blocks as a sole operator. Unfortunately, exploration activities carried out in these areas did not yield commercial discoveries. As a result, both PSCs were wound up later by mutual consent. As of 2026, the company's activities remain focused exclusively on the Sarqala field.
Gazprom Neft Middle East B.V.: local community support
The Sarqala field is located in the vicinity of the town of Kifri. Over the past 15 years, living conditions in nearby villages have undergone a gradual transformation, shifting from a period of instability and limited resources toward more structured economic activity and improved access to basic services. Around 2010, many settlements in the area were still affected by the aftermath of prolonged instability. Local infrastructure was either absent or significantly degraded, with limited access to reliable electricity, clean drinking water and healthcare services. Road networks were underdeveloped, and access to education was constrained. Economic activity was largely based on subsistence farming, livestock breeding and small-scale agriculture, resulting in low household incomes and limited employment opportunities.
Since the start of its activities, Gazprom Neft Middle East B.V. has implemented a range of social programs across the Garmian area. These programs are focused on education, healthcare, sports development, and environmental initiatives, with the objective of supporting local communities.
Education
Gazprom Neft Middle East B.V. provided funding for educational grants enabling Kurdish students to pursue degrees in petroleum-related disciplines at Russian specialized universities. The majority of these graduates subsequently assumed engineering and managerial positions at Gazprom Neft Middle East. In addition, the organisation took charge of putting up two new school buildings, completed in 2023.
Community Infrastructure
Gazprom Neft Middle East provided funding for the development of sports infrastructure facilities in nearby communities and ensured the supply of equipment to local teams. In addition to football, assistance was extended to the creation of facilities for boxing and indoor sports, as well as to the installation of playgrounds for children in adjacent communities.
Healthcare
In the healthcare sector, Gazprom Neft Middle East B.V. supported local medical facilities through the provision of essential equipment aimed at enhancing the quality and accessibility of healthcare services. During the period from 2020 to 2021, the company operated mobile medical units that provided healthcare services to the villages located near its areas of operation.
Environmental, Cultural and Research Initiatives
Gazprom Neft Middle East B.V. implemented environmental and cultural initiatives in the region, including a tree-planting campaign under which more than sixteen thousand saplings were planted across the district. In addition, the company. supported the publication of research works on Kurdish culture and heritage in 2015 and 2019, contributing to cross-cultural exchange and the development of academic research.
