JOINT VENTURE: Oil production expected to hit 230,000 bpd in 2017
PETRONAS Carigali Iraq Holding B.V. has begun oil production from Garraf oil field in Iraq at the rate of 35,000 barrels of oil per day (bpd) and expected to reach 230,000 bpd in 2017.
Together with its partners Japan Petroleum Exploration Co Ltd (Japex) and North Oil Company, Petronas achieved its first oil on August 31 from the Garraf oil field, which is located in Iraq's Thi Qar Province.
"As one of the largest investors in Iraq, Petronas will continue with our planned development efforts and activities. The Garraf project provides the opportunity to develop our capabilities and expertise in the Middle Eastern region.
"The operating environment is challenging and the success of first oil at the Garraf oil field helps cement Petronas' reputation in the industry as an experienced and capable operator," Petronas Carigali Iraq country manager Ikhlas Abdul Rahman said in a statement yesterday.
Japex, in partnership with Petronas, secured the winning bid in December 2009 under Iraq's second petroleum licensing round and was awarded the development and production service contract for the Garraf contract area for a period of 20 years, with an extension of a maximum of five years.
Petronas Carigali Iraq holds a 45 per cent stake in the oil field, followed by Japex Garraf Ltd (an affiliate of Japex with a 30 per cent stake) and the remaining 25 per cent is held by North Oil Company, an Iraqi state-owned company.
After winning the bid, Japex and Petronas started the development of the field and in June 2011, started drilling the wells.
"Up to now, 11 wells (two appraisal and nine development wells) have been drilled and surface facilities necessary for the initial production have been constructed," Japex said.
Petronas in late 2009 had won four of the five bids it submitted together with foreign consortia to develop oilfields in Iraq.
Besides Garraf, the three other oil fields were Halfaya, Badra and Majnoon, which will raise Petronas' international crude oil reserves by 3.6 billion barrels of oil equivalent to 5.8 billion barrels.