PNG LNG Output, Spot Prices High: Oil Search
The Papua New Guinean LNG terminal, which has been seeing production rates surge above nameplate capacity, is on track to meet the upper-end of its 2017 production guidance, Australia-listed Oil Search said November 13.
The facility’s production guidance for the year currently stands at 23.5mn-24.3mn barrels of oil equivalent after being lifted in August from 23mn-24mn boe.
With ample feed gas, the PNG LNG terminal has been surging above its 6.9mn metric tons/year nameplate capacity and in Q3 saw record annualised production roughly 25% above nameplate at 8.6mn metric tons/year.
Oil Search says that those high levels of production are able to be maintained or exceeded.
“At present, 6.6 mtpa is being sold under contract and the balance, approx. 2 mtpa, is being sold on the spot market and enjoying some good prices,” a spokeswoman for Oil Search said via email November 14.
“We are currently marketing an extra 1.3 mtpa to be sold under short/mid term contracts. [We] have had [very] good interest but we are in no real hurry to sign anything up due to the strong spot market, which we are monitoring to see whether the rise is just seasonal or will be maintained. If and when we do, we will have 7.9 mtpa being sold under contract and the balance spot,” she added.
PNG LNG is operated by ExxonMobil (33.2%), with Santos (13.5%), National Petroleum Company of PNG (16.8%), JX Nippon Oil and Gas Exploration Company (4.7%), Mineral Resources Development (2.8%), and Oil Search (29%) also holding interests in the project.
Nathan Richardson