Oil Search third-quarter revenue slips

The Papua New Guinea-focused oil and gas producer and PNG LNG stakeholder, Oil Search reported a drop in revenue in the third quarter of 2019. 

In its quarterly report, Oil Search said its revenue reached $361.1 million, 24 percent below the corresponding quarter in 2018 when it reported revenue of $474.9 million.

Compared to the previous quarter when Oil Search reported revenue of $378.9 million, this is a 5 percent drop.

Revenue for the quarter reflected lower product sales and timing of shipments, with three LNG cargoes on the water at the end of the quarter, weaker global oil prices and a higher proportion of condensate relative to oil in the product mix.

Oil Search added that total production for the third quarter of 2019 was 6.8 million barrels of oil equivalent (mmboe), 1 percent below the previous quarter’s production and 10 percent lower compared to the corresponding quarter last year.

The PNG LNG Project contributed 6.2 mmboe net to Oil Search based on an annualised gross production rate of 8.3 mtpa for the quarter, 20 percent above nameplate capacity, with an annualized gross production rate of just under 9 mtpa achieved in July. Due to the loading issue, Oil Search 2019 full-year production guidance has been revised to 27 – 29 mmboe, from 28 – 31 mmboe.

Oil Search managing director, Peter Botten said that following mobilization of materials and equipment to site, repairs to the damaged mooring chain were completed successfully in mid-October and normal loading operations have now resumed, with production ramping up. As a precaution, maintenance work on the other mooring chains at the facility has commenced.

A total of 26 LNG cargoes were delivered, comprising 18 cargoes sold under long-term contract, five under mid-term sale and purchase agreements and three on the spot market, compared to 28 cargoes sold in the previous quarter.

Three cargoes were on the water at the end of the period, compared to two at the end of the second quarter of 2019.