Oil Search: PNG LNG hits record quarterly production, 28 LNG cargoes sold

ExxonMobil-operated US$19 billion PNG LNG project achieved the highest quarterly production since the start of operations, reaching an annualised rate of approximately 8 mtpa in the first quarter 2016.

This is a rise compared to the 7.6 mtpa in the last quarter of 2015, and 16 percent above the nameplate capacity, Oil Search informed in its quarterly report.

In total, the first quarter production of 7.72 mmboe was the highest in the company’s history, 3 percent up on the fourth quarter of 2015, according to Oil Search Managing Director, Peter Botten.

The PNG LNG project sold 28 cargoes during the quarter, four more than in the fourth quarter of 2015. According to the report, 24 cargoes were sold under long-term contract while four on the spot market, with two cargoes on the water at the end of the quarter.

Botten noted that a partial shutdown of the LNG plant occurred during April due to maintenance.

Sales revenue

Total sales revenue from LNG, gas, oil and condensate for the quarter was $298.9 million, 8 percent lower than in the fourth quarter of 2015, Oil Search said.

During the first quarter of 2016, 31,245 billion Btu of LNG was sold, 18 percent higher than sales volumes in the fourth quarter of 2015.

However, Oil Search added that the average price realised for LNG and gas sales declined 19 percent, to US$6.84 per mmBtu, due to weak spot oil prices in the fourth quarter of 2015, which impacted 2016 first quarter LNG contract prices. The effect was delayed due to an approximately three month lag in contract pricing terms.

The weakness in global oil prices continued, particularly in January, when Brent dipped below US$30 per barrel for the first time in 12 years.

LNG World News Staff