Oil Search Reports Record Quarterly Output Numbers
Papua New Guinea (PNG) based Oil Search on Tuesday reported record quarterly production numbers.
Total production in the first quarter of 2016 was 7.72 million barrels of oil equivalent (mmboe), three percent higher than in the previous quarter. This represented the fourth successive period of production growth and a new record quarterly production for Oil Search.
Oil Search said it remains on track to deliver 2016 production within the 27.5 – 29.5 mmboe guidance range.
The PNG LNG project, in which Oil Search has 29 percent stake, achieved its highest quarterly production since coming onstream, producing at an annualised rate of approximately 8 mtpa, up from 7.6 mtpa in the fourth quarter of 2015 and 16 percent above nameplate capacity.
Production net to Oil Search from the PNG LNG project was 5.94 mmboe (25.8 bcf of LNG and 0.88 mmbbl of liquids).
"This excellent performance was the result of very high levels of facilities uptime, both at the [upstream] Hides gas conditioning plant and at the LNG trains, as well as continued strong productivity from the wells," said Oil Search Managing Director Peter Botten. “It is notable that production above nameplate capacity has been achieved at almost no additional capital cost and reflects the success of the operator’s facilities optimisation activities.”
A partial shutdown of the LNG plant for maintenance in April is expected to have a minor impact on production in the second quarter, Botten added. “This has already been captured in our production guidance for 2016, with our estimate of PNG LNG production rates unchanged at between 7.5 and 7.9 mtpa.”
Total revenue for the quarter was $313.1 million, 9 percent lower than in the fourth quarter of 2015. An 18 percent increase in LNG and gas sales and a 2 percent increase in liquids sales were offset by a 19 percent decline in both the average realised LNG and gas price and the average realised oil and condensate price, to $6.84 per mmBtu and $34.76 per barrel, respectively.