Oil Search Reports Record Output for Q3

Papua New Guinea-focused Australian firm, Oil Search, said October 17 that its production for the third quarter of 2017 hit record levels, owing to the highest output yet seen at Exxon-operated PNG LNG, in which Oil Search has a 29% stake.

Oil Search’s Q3 production was 7.91mn barrels of oil equivalent, up 9% quarter on quarter and up 3.7% year on year. Total production for the nine months to September 30, 2017 stood at 22.72 mn boe. However, full-year production guidance remains unchanged at 29mn-30.5mn boe.

PNG LNG’s output also hit a record high in Q3 and contributed net 6.39mn boe to Oil Search. It reached an annualised rate of approximately 8.6mn metric tons/yr, the highest quarterly output achieved since the project came on stream in 2014, Oil Search said, adding: “The plant is now operating at approximately 25% above nameplate capacity, which has been achieved for little additional cost."

Total revenue for the third quarter was $380.8mn, 23% higher year on year and 15% up quarter on quarter. The average realised oil and condensate price was $52.75/b while the average gas and LNG price was $7.48/mn Btu. 

Shardul Sharma