PNG LNG Exceeds Nameplate Capacity

The Papua New Guinea LNG complex continued to operate well above its nameplate capacity, reaching its highest average annualised production rate since production commenced, of approximately 8.3mn metric tons/yr during 4Q 2016, partner Oil Search said January 24.

Oil Search has a 29% stake in the ExxonMobil operated PNG LNG project, which cost US$19bn to develop and started producing in April 2014.

PNG LNG's original design specification was 6.9mn mt/yr.

A total of 28 LNG cargoes were sold during the period, 24 under long term contract and four on the spot market, with two cargoes on the water at year end, the company said. For full year 2016, 108 LNG cargoes were sold, comprising 89 under long-term contract and 19 on the spot market, with two cargoes on the water at the end of the year.

During 4Q, Oil Search itself produced 7.72mn barrels of oil equivalent, up 1% on year. For the full year, production was 30.24mn boe, 3% higher than production in 2015 and marginally above the top of the 2016 guidance range, as well as being an all-time record for the company.

Australia-listed Oil Search has been operating in PNG since 1929. Its 2017 full year production is anticipated to be in the range of 28.5 – 30.5mn boe.

Shardul Sharma