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KUALA LUMPUR (Oct 15): Oil prices collapsing to around $ 40 a barrel this year has prompted Petronas’s Petroliam Nasional Bhd to consider exiting the Gharraf oil field in southern Iraq, Argus Media reported , citing the president of Petronas. and the group’s chief executive officer (CEO) Tengku Muhammad Taufik Tengku Aziz, as he said at the Energy Intelligence Forum.
Argus Media reported yesterday that Petronas operates the Gharraf oil field with a 45% stake, followed by Japan Petroleum Exploration Co Ltd with a 30% stake, while Iraqi state-owned North Oil Co owns the remaining 25% stake in the joint venture (JV). .
Production from the field was reportedly suspended in mid-March in response to the Covid-19 pandemic. Production restarted in July at a rate of 50,000 barrels / day. The Gharraf oil field produced 90,000-100,000 barrels / day last year, according to the report.
“Under the $ 40 per barrel scenario, I would be the first to admit that under all possible lenses, we have had to trigger a review of our intention to stay in Gharraf.
“I can only say to be attentive to this space … we are in consultation with the host authorities to see if [oilfield’s] the economy can be improved but of course, in addition to that, we have to make sure that it also makes sense from a sustainability perspective.
“If we can make it (the oil field) better, cleaner, we will keep looking for it,” said Tengku Muhammad Taufik.
Tengku Muhammad Taufik was reported to have said that Petronas’ role as custodian of Malaysia’s oil and gas (O&G) resources requires it to look at its portfolio through “strict and regulated” lenses.
This reportedly means that projects must not only be resilient over the long term in a US $ 40 / barrel crude oil price scenario, but also “cleaner and greener” to align with stakeholder expectations and the clients.
World crude oil prices rose today. Reuters reported that oil prices rose slightly in early trading after data showed US crude stocks fell last week, adding to 2% gains overnight as it was seen that the Organization of the Petroleum Exporting Countries (OPEC) and its allies fully complied in September with their pact to stop the exit.
US West Texas Intermediate (WTI) crude futures were reported to have risen four cents, or 0.1%, to $ 41.08 a barrel at 0032 GMT, while Brent crude futures were up. five cents, or 0.1%, at $ 43.37 a barrel. .
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