PNG LNG triples Oil Search revenue

PNG’s Oil search said its total revenue for the third quarter was US$538.2 million, the highest revenue achieved in the company’s history.

The company’s revenue was 58% higher than in the second quarter and more than three times total revenue in the previous corresponding period.

Revenue was driven by materially higher product sales, with 21 LNG cargoes and six cargoes of Kutubu Blend delivered during the period. Average realised LNG and gas price declined by 7%, from US$14.41 per mmBtu to US$13.38 per mmBtu, reflecting a weaker LNG spot market, Oil Search said in a statement.

Oil Search’s total oil and gas production in the third quarter of 2014 was 6.67 million barrels of oil equivalent (mmboe), 81% higher than in the second quarter of 2014 and nearly four times production achieved in the corresponding period of 2013.

PNG LNG project

Third quarter production from the Exxon-operated PNG LNG project was 4.84 mmboe net to Oil Search, comprising 20.9 bcf of gas for LNG and 0.74 mmbbl of liquids.

This was 158.8% higher than production in the second quarter of 1.87 mmboe (7.5 bscf gas and 0.4 mmbbl liquids), with both LNG trains operating at full capacity from late July.

During the quarter, 23 LNG cargoes were lifted and 21 delivered to Asian buyers, taking the total to 30 LNG cargoes lifted and 26 delivered in the year to date.

Six cargoes of Kutubu Blend were sold, resulting in a total of 15 cargoes sold in the year to date.

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