Iraq's Gharraf oil field is expected to achieve its output target of 230,000 b/d later than the original schedule of the end of 2020, equity partner Japan Petroleum Exploration said Nov. 10.
Japex's outlook came as it released its April-September results, which showed a 70% year-on-year decline in its overseas crude sales to 187,000 kl or 1.18 million barrels due mainly to reduced sales from the Gharraf oil field.
For fiscal 2020-2021 (April-March), Japex also revised lower its Aug. 11 forecast by 23% in its overseas crude sales for the fiscal year to March 2021 to 548,000 kl, or 3.45 million barrels.
Japex attributed its lowered 2020-2021 overseas crude sales outlook to a loss of expected lifting of a crude cargo at the end of September as part of Iraq's production restrictions that are part of the OPEC+ output cut agreement, a company spokesman said. Iraq's production was 3.79 million b/d in October, according to the S&P Global Platts latest survey, just under its 3.80 million b/d quota in the agreement but without the 165,000 b/d in catch-up cuts it was supposed to enact.
Japex now plans to lift 1 million barrels of equity crude cargo each from the Gharraf oil field in December and March 2021 after lifting another 1 million barrels in June, the spokesman said.
The Gharraf oil field in southern Iraq restarted production at a rate of 50,000 b/d in July after output was suspended in mid-March as part of measures to contain the coronavirus pandemic.
The field produced around 40,000-50,000 b/d to date as part of the Iraqi production restriction, the spokesman said. It produced an average of 75,000 b/d over January-March, according to Japex.
Petronas CEO Tengku Muhammad Taufik said Oct. 14 that the Malaysian state-run company is considering whether to sell its operating stake in Iraq's Gharraf oil field because the oil price slump has hit its margins from the project.
The Gharraf field started production in August 2013 under a technical service contract with Iraq 's South Oil Co. The consortium consists of Petronas with a 45% stake, Japex Garraf with 30% and North Oil Co. with 25%. Japex holds a 55% stake in Japex Garraf, with state-owned Japan Oil, Gas and Metals National Corp. holding 35% and Mitsubishi 10%.
