Oil Search H1 revenue jumps despite second-quarter drop

The Papua New Guinea-focused oil and gas producer and PNG LNG stakeholder, Oil Search reported a drop in revenue for the second quarter of the year.

The company said in its quarterly report that its revenue reached $378.9 million, 5 percent down on the $398.1 million reported in the previous quarter.

However, the company’s revenue in the first six months of the year jumped 39 percent from $557.8 million in the first half of 2018 to $777 million in 2019.

Oil Search managing director, Peter Botten noted, “The average realized oil and condensate price in the quarter rose 10 percent to $68.67 per barrel, reflecting an increase in global oil prices, while the average realized LNG and gas price declined 8 percent, to $9.30/mmBtu, reflecting weaker oil prices in the first quarter of 2019.”

Botten added that total production reached 6.9 mmboe for the 2019 second quarter, taking total production for the first half of 2019 to 14.1 mmboe, compared to 10.2 mmboe in the earthquake-impacted first half of 2018.

“The PNG LNG project produced at an average annualized rate of 8.4 mtpa during the second quarter and 8.6 mtpa for the first half of the year. Second quarter production rates were impacted by a 13-day period of rate reduction in late May/early June, while scheduled plant maintenance took place,” Botten said.

No further major maintenance is planned for the plant over the remainder of 2019.

A total of 28 LNG cargoes were delivered, comprising 21 cargoes sold under long term contracts, five under mid-term sale and purchase agreements and two on the spot market, compared to 27 cargoes sold in the previous quarter.

Two cargoes were on the water at the end of the period, compared to three at the end of the first quarter of 2019.