Oil Search Q1 production drops

Papua New Guinea’s Oil Search said its total production in the first quarter of 2015 was 6.91 million barrels of oil equivalent (mmboe), a drop of 5 percent as compared to 7.24 mmboe in the previous quarter.

Total revenue for the quarter was US$472.3 million, 16% lower than in the previous period, reflecting the impact of the global downturn in oil prices on the company’s LNG, gas, oil and condensate sales revenue, Oil Search said in a statement on Tuesday.

The average realised LNG and gas price was US$12.37/mmBtu, down 14% from the fourth quarter, while the average realised oil and condensate price declined 30 percent, to US$51.29/barrel.

Production net to Oil Search from the PNG LNG project, in which the company has a 29 pct stake, was 5.27 mmboe (23.1 bcf LNG and 0.75 mmbbl liquids), while the base PNG oil and gas business contributed 1.64 mmboe.

“The PNG LNG project continued to perform well, with both trains consistently operating above nameplate capacity. Planned maintenance in the LNG plant took place late in the quarter, which had a minor impact on production. This was completed by the end of the period,”  Managing Director of Oil Search, Peter Botten said.

“During the quarter, 24 LNG cargoes were lifted and 26 sold to the project’s four long-term customers from Japan, China and Taiwan. Of the LNG cargoes sold, 19 were under long-term contracts and seven sold on the spot market. Seven-and-a-half equivalent cargoes of Kutubu Blend, comprising production from the PNG oil fields and condensate from the PNG LNG Project, were also sold, as well as two cargos of naphtha,” Botten added.

LNG World News Staff; Image: Oil Search