Petronas signals Gharraf oil field exit

The Malaysian company wants to sell its stake to Pertamina due to late payments and low profit margins.
Workers operate a drilling rig at the Gharraf oil field in November 2022. (Photo credit: Dhi Qar Oil Company)

NASSIRIYA - Malaysia’s Petronas has told Iraq it wants to sell its stake as operator of the 155,000 barrel per day (bpd) Gharraf oil field — the latest sign that international oil companies are dissatisfied with Iraq’s investment climate.

In a meeting on May 29, senior leadership of Petronas told Oil Minister Hayyan Abdulghani the company is exploring a sale of its 45 percent operating stake to Indonesia's Pertamina, according to an internal memo from Nasser Aziz Jabar, the director general of the ministry’s Directorate of Planning, Studies, and Follow-Up. Two Petronas officials and two officials at the state-run Dhi Qar Oil Company (DQOC) confirmed the authenticity of the memo, which was obtained by Iraq Oil Report.

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