TOKYO, Aug 10 (Reuters) - Japan’s Cosmo Energy Holdings said on Thursday the offshore Hail oilfield in Abu Dhabi is set to start production in October.
The start-up has been slightly delayed from last year’s projection of end-June, but the Hail oilfield operated by Cosmo’s joint venture is set to reach full output by the end of this year, company officials said.
Cosmo has an undisclosed stake in the field through its 63 percent-owned joint venture with other Japanese firms. The company declined to comment on production targets but industry sources have said the field is likely to produce more than 20,000 barrels per day at its peak.
Cosmo, owned nearly 21 percent by Abu Dhabi’s state-owned investment vehicle, expects Hail project to contribute around 20 percent of this business year’s projected 26-billion-yen profit from upstream business, Senior Executive Officer Kenichi Taki told reporters during the first-quarter earnings conference.
Cosmo on Thursday posted a record recurring profit of 23.3 billion yen ($212 million), without taking into account inventory effects, in April-June, helped by healthy oil refining margins and a 99.9 percent run rate at its refineries.
Japanese oil refiners led by JXTG Holdings have found support from lower crude refining capacity to comply with the trade ministry’s second round of directives to increase competitiveness of refining units.
$1 = 109.9500 yen Reporting by Osamu Tsukimori; Editing by Sunil Nair