Japan Petroleum Exploration Co., Ltd.
Impact on Our Performance Due to Escalation of the Middle East Situation
Due to the escalation of the Middle East situation, LNG procurement costs are expected to rise significantly, and sales may decline due to the suspension of production at the Iraq Garraf oil field. This impact is scheduled to be incorporated into the performance forecast for the fiscal year ending March 2027.
Key Figures
- Conducted substitute procurement for two LNG cargos (Q1 FY2026)
- Production and operations at Garraf oil field remain suspended (due to force majeure declaration)
- Minimal impact expected on FY2026 performance
AI要約
Overview of the Impact of Middle East Situation
Due to the escalation of the Middle East situation and the closure of the Strait of Hormuz, our company is facing difficulties procuring two LNG cargos from the Persian Gulf, scheduled for the first quarter of fiscal 2026. We have switched to spot procurement from other producing regions, which is expected to cause a significant increase in LNG procurement costs. However, natural gas and power supply are expected to remain unaffected.
Suspension of Operations at Iraq Garraf Oil Field and Future Outlook
The Garraf oil field in southern Iraq, operated by our consolidated subsidiary Japex Garraf Co., Ltd., has ceased production and shipment due to a force majeure declaration by the Iraqi government, with no prospects for resumption. Consequently, no sales are expected from this operation. Although rising crude oil prices and yen depreciation are factors for increased revenue and profit, increased spot procurement costs and suspension of operations may negatively impact earnings. The specific impact amount is currently being examined and will be reflected in the earnings forecast for the fiscal year ending March 2027, to be announced on May 13.
JX Nippon Oil & Gas Exploration Corporation
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