Japan’s Cosmo Energy Holdings said on Aug. 10 the offshore Hail oil field in Abu Dhabi is set to start production in October.
The startup has been slightly delayed from last year’s projection of the end of June; however, the Hail oil field operated by Cosmo’s joint venture (JV) 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%-owned JV 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 bbl/d at its peak.
Cosmo, owned nearly 21% 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 Aug. 10 posted a record recurring profit of 23.3 billion yen (US$212 million), without taking into account inventory effects, in April-June, helped by healthy oil refining margins and a 99.9% 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.