Oil Search: 119 PNG LNG cargoes loaded since April last year

ExxonMobil-operated PNG LNG project has loaded 119 cargoes of the chilled gas since it commenced production in April last year.

“The PNG LNG Project performed ahead of expectations during the first half, producing LNG at an annualised rate of approximately 7.1 MTPA, above the nameplate capacity of 6.9 MTPA,” Oil Search Managing Director, Peter Botten said.

According to Botten, as well as high levels of uptime at the LNG plant, this result was supported by strong upstream deliverability, with a good performance from the Hides wells, the associated gas fields and the Hides gas conditioning plant.

“All four of our contract customers are taking their full contractual volumes, as well as more than 85% of available spot cargoes, highlighting the strong acceptance that has been achieved by the Project in the marketplace,” Botten added.

Oil Search, which has a 29 percent stake in the LNG project, reported a net profit after tax for the first half of US$227.5 million, 49 percent higher than in the first half of 2014 and the highest half-year profit in the company’s history, despite weaker oil and gas prices.

The company’s total revenue increased 69 percent to US$863.8 million, driven by a more than three-fold increase in oil, condensate, gas and LNG sales, from 4.7 million barrels of oil equivalent (mmboe) to 14.5 mmboe, reflecting a full period of production and sales from the PNG LNG project.

The average realised LNG and gas price during the period was US$10.19 per mmBtu compared to US$14.20 per mmBtu in the same period of 2014, according to Oil Search.

Oil Search said its full year production guidance has been upgraded to 27 – 29 mmboe, while unit production costs are expected to be in the range of US$9 – US$11 per boe, US$1 per boe lower than prior guidance.

LNG World News Staff; Image: Oil Search