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LNG project boosts Oil Search figures

LNG Industry,

Oil Search announced significant improvements in production, sales and revenue for the quarter ended 30 June 2014, due, in part, to the PNG LNG Project. Production saw an increase of 120% from 1.68 mmboe in Q1 to 3.69 mmboe in Q2, while total sales rose 113% from 1.51 mmboe in Q1 to 3.22 in Q2, and total revenue saw a 100% increase from US$ 170.2 in Q1 to US$ 339.7 in Q2.

Oil Search’s increased oil and gas production in Q2 reflected the impact of the start-up of the PNG project. Oil Search said that it remained on track to deliver 2014 production within the upgraded 17 - 20 mmboe guidance range.

Revenue for the quarter was nearly double that of Q1 based on an average realised oil and condensate price of US$ 111.95 per barrel and an average realised LNG and gas price of US$ 14.14/million Btu. Oil Search said that seven LNG cargoes were loaded and five LNG cargoes and seven cargoes of Kutubu Blend were delivered during Q2.

The PNG LNG Project began production of LNG in April 2014. First LNG cargo departed from PNG on 25 May 2014. Oil Search said that this was a milestone that would transform the company's long-term production and financial profile.

Peter Botten, Oil Search’s Managing Director, said: “The highlight of the 2014 second quarter was the start of production and sales of LNG from the PNG LNG Project. This was a major milestone […] It marked the completion of the country’s largest resource project, which is expected to more than double PNG’s Gross Domestic Product and transform the country into a significant supplier of LNG to key Asian markets.”

Adapted from press release by Ted Monroe

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