Oil Search 2Q Output Drops 4% on Quarter

Australian Oil Search July 18 reported a 4% quarter-on-quarter drop in 2Q production due to planned maintenance activities at its operated facilities, as well as at its Papua New Guinean PNG LNG plant.

The PNG focused company said its output in the quarter stood at 7.24mn boe. Total production for the first half of 2017 was 14.81mn boe, similar to 2016 first half production, and the company said it remains on track to deliver 2017 production within the 28.5 – 30.5mn boe guidance range.

Production net to Oil Search from the PNG LNG project was 5.90mn boe. The project operated at an annualised rate of approximately 8.1mn mt/yr during the period, 3% lower than the level achieved in the first quarter, due to scheduled maintenance in May, but averaged 8.65mn mt/yr in June, the highest monthly rate achieved since start-up, Oil Search said. ExxonMobil continued marketing up to 1.3mn metric tons/yr from the PNG LNG project.

Total revenue for the quarter fell to $332.5mn from $343.7mn in the previous quarter. However, for the first half, the revenue was $676.2mn, 16% higher than in the first half of 2016.

The average realised LNG and gas price was $7.93/mm Btu, 7% higher than the first quarter average, while the average realised oil and condensate price decreased by 8%, to $50.99/b.

Shardul Sharma