Oil Search Reports Record Quarterly Output

Papua New Guinea focused Oil Search has upgraded its 2015 calendar year production forecast range after achieving record output in second quarter. 

The company said in a statement Tuesday it has upped annual production forecast from 26 – 28 mmboe to 27 – 29 mmboe.

Total production in the second quarter of 2015 was 7.41 mmboe, 7 percent higher than in the previous quarter and the highest quarterly production in Oil Search’s history. The PNG LNG project contributed 5.67 mmboe (24.7 bcf LNG and 0.83 mmbbl liquids), while production from the base PNG oil and gas business was 1.74 mmboe.

“Total production of 7.41 mmboe for the quarter was the highest quarterly production ever achieved by the company. This excellent result reflected further production increases from the PNG LNG project, combined with a solid performance from our operated oil fields. Based on the PNG LNG plant’s performance to date, we are confident the project can continue to produce LNG above the nameplate capacity of 6.9 MTPA in 2015,” said managing director Peter Botten.

Total revenue for the quarter was lower at $391.5 million, compared with $472.3 million in the first quarter of 2015. The average realised LNG and gas price was $8.10 per mmBtu, 35 percent lower than in the first quarter, while the average realised oil and condensate price was $61.69 per barrel, 20.3 percent higher than in the first quarter. This brought total revenue for the first half of 2015 to $863.8 million, compared with $510.0 million in the first half of 2014.