PNG LNG Output at Record Quarterly High

ExxonMobil's PNG LNG project produced at an annualised rate of about 8.1mn mt/yr in 3Q 2016, 17% above its nameplate capacity and 10% higher than in 2Q. It is the highest quarterly rate achieved since it came onstream in 2014, partner Oil Search said October 18.

“The PNG LNG project was back to full production in the third quarter, following routine maintenance and a brief unplanned shut-down in the second quarter. Third quarter production net to Oil Search from the PNG LNG project was 5.94mn barrels of oil equivalent, comprising 25.9bn ft³ of LNG and 0.87mn barrel of liquids,” CEO Peter Botten said.

During the period, 27 LNG cargoes were sold, comprising 23 under long-term contract and four on the spot market. The average price realised for LNG and gas sales increased 23% to $6.44/mn Btu, Oil Search said, adding that this reflected stronger spot oil prices in the second quarter, with a three-month lag between oil and LNG contract prices.

PNG LNG project (Credit: Exxon PNG Ltd)

Total production in the third quarter of 2016 was 7.63mn boe. This was 6% higher than in the second quarter and the second highest quarterly production in Oil Search’s history. In the same quarter of last year production was 7.41mn boe. The Oil Search-operated PNG oil and gas fields contributed 1.69mn boe net to Oil Search, compared to 1.75mn boe in the previous quarter. The company said production was expected too be at the top end of its forecast range for 2016 of 28-30mn boe.

Total revenue for the quarter was $309.5mn, 16% higher than in the second quarter of 2016. In the corresponding period last year revenue was much higher at $379mn. 

Shardul Sharma