Petronas is considering withdrawing from the Garraf oil field

by **RamblerNash** Thu Oct 15, 2020 10:10 pm

The logo of the company "Petronas". "Internet"

10/15/2020

Economy News - Baghdad

The CEO of the Malaysian "Petronas" company, Tengku Muhammad Tawfiq, said that the collapse of oil prices this year prompted the state-owned company to consider withdrawing from the Al-Garraf oil field, in southern Iraq.

In his speech at the Energy Intelligence Forum 2020, he added, "With an average of $ 40 a barrel, I will be the first to admit that - with all possible scenarios in mind - we had to reconsider our intention to stay in Al Garraf," according to Argos. Media "concerned with energy affairs.

He continued: "We are consulting with the Iraqi authorities to see if it is possible to improve the economic situation of the field, but we need - of course - to make sure that the decision is reasonable and takes into account the goal of sustainability."

And "Petronas" holds a share of 45% of the Gharaf field, while the "Japanese" Gabex "owns a share of 30%, and the Iraqi North Oil Company - which is owned by the state - keeps the rest.

The field - whose production ranged between 90,000 and 100,000 barrels per day in 2019 - was suspended in mid-March. Affected by the (Covid-19) epidemic, production resumed in July at a rate of 50 thousand barrels per day.

Tengkou Mohamed said, "If we can make it (the field) better and cleaner, we will continue to stay in it," noting that Petronas' role requires it to look at its portfolio through a "strict and orderly" vision, which means that projects do not just need to be Flexible in the long term at an average of $ 40 a barrel, it also needs to be "cleaner and greener" in order to meet the expectations of shareholders and customers.

Petronas is looking to expand its portfolio of renewable energy sources, but it will also continue to look for growth opportunities in the field of oil and gas.

In this context, Tengo said, ignoring the view of oil and gas acquisitions in the current market environment would be a "default", but "Petronas should be able to provide it in a clean and cost-effective way," he said.

He added that the company aspires to achieve carbon neutrality, but the time frame for that is still under discussion.

It is noteworthy that last June, Petronas held intensive negotiations with the "Tata" group, to become a major investor in the renewable energy infrastructure investment fund planned for "Tata Power", the largest integrated utilities company in India.

https://economy-news.net/content.php?id=22270