KOGAS announced on Sep. 5 that its subsidiary KOGAS Iraq B.V. has achieved 500,000 barrels in daily oil production from the Jubair field in Iraq.
The market value of 500,000 barrels of oil per day is about 34.8 billion won. KOGAS has successfully reached the first-stage goal in oil production at the Jubair field. Its second-stage goal is 700,000 barrels per day.
KOGAS has participated in the Jubair project since 2010. It produced 180,000 barrels a day in the first year, and produced an average of 430,000 barrels per day in 2017.
The Iraqi subsidiary recovered US$3.07 billion from a cumulative investment of US$2.95 billion in the Jubair project as of June this year, recording a 104.4 percent return on investment. Its net profit hit US$59.57 million at the end of last year.
“We have recovered US$330 million, or 87.3 percent of the US$378 million investment in the Iraqi subsidiary, and will be able to secure steady profits through dividends every year from 2020 through 2035 when the project will come an end,” a KOGAS official said. “In recent years, despite uncertainties surrounding the operation of the Iraqi subsidiary such as a drop in international oil prices and worsening political situations in the Middle East, we have achieved success in the resources development business.”