Oil Search's 2019 Revenue Up 3%
Sydney-listed Oil Search January 28 said its revenue last year was US$1.58bn, up 3% on the previous year.
Total production for the 2019 full year was 27.9mn boe, up 11% year on year and within the revised production guidance of 27 – 29mn boe. The PNG LNG project produced 8.5mn metric tons (gross) during 2019, the highest annual production since the project started operations in 2014, Oil Search said.
The average realised oil and condensate price for the year of US$62.86/barrel was 11% lower than in 2018, while average LNG and gas prices fell 5% to US$9.58/mn Btu.
During the three months to December 31, revenue was US$446.7mn as against US$503.1mn in the same quarter of the previous year, Oil Search said.
Commenting on the Papua LNG project gas agreement, the company said the partners have not arrived at any deal with the government yet and the discussions are continuing.
“Ten legislative changes required for the Papua LNG project gas agreement were passed during the quarter, while detailed discussions took place between the PRL 3 (P’nyang) joint venture and the PNG government on terms for the P’nyang field development. Agreement on these terms was not reached by the end of 2019, which was the targeted timeframe. However, negotiations recommenced in early January and are ongoing, with all parties working to reach an equitacble outcome,” the company said.
Oil Search, ExxonMobil and France's Total are working on developing the proposed Papua LNG project and the expansion of the existing PNG LNG plant. The Papua LNG project will encompass two LNG trains of 2.7mn mt/yr each and will be developed in synergy with the existing PNG LNG project facilities, operated by ExxonMobil.
The proposed expansion of PNG’s LNG production and export capacity is dependent on the successful conclusion of both the Papua LNG and the P’nyang gas agreements. The Papua LNG agreement, which was first signed in April last year, was sealed in September after it went for renegotiation. Oil Search, ExxonMobil and Total now need to agree on the fiscal and other terms related to the development of the P'nyang gas field to proceed with the LNG expansion.