Photo credit: Offshore Energy
Peter Fredricson, Acting CEO, said “Oil Search delivered another strong quarter of production, which was up 5% on the previous quarter, demonstrating the resilience of our operations and sustained commitment to the safety of our people and maintaining safe and reliable production. Operating revenues were up 12%, supported by strong growth in oil prices.”
“Earlier in the quarter, the PNG LNG project participants approved the full funding of the Angore project which, along with the Associated Gas fields, forms an important part of the gas sequence and underpins maintaining plant capacity beyond 2030.”
“We have made good progress across our growth projects with the ramping up of activity in the Papua LNG project, as it prepares to enter pre-FEED before the end of 2021 ahead of a joint venture decision to enter FEED in 2022.”
“We are also pleased to be another step closer to the development of the P’nyang gas resource with the recent signing of a HOA between ExxonMobil and the PNG Government outlining the framework for negotiating a fullytermed Gas Agreement before the end of 2021. The P’nyang project represents a valuable back-fill opportunity within the PNG LNG gas sequence and another opportunity for Oil Search to be involved in a key project that will support the PNG economy and its people.”
“In Alaska, the Pikka Phase 1 project has progressed technical work towards FID. As previously communicated Oil Search and its co-venture partner are focused on ensuring the appropriate pre-conditions, including funding, are met prior to taking FID targeted in 1H22, with resulting first oil planned for 2025.”
“While the absolute focus of our workforce remains on safely delivering our strategic objectives, important steps were also taken during the quarter to advance the opportunity presented by the proposed merger with Santos. The potential benefits of a combined entity remain clear, with the merged entity expected to sit amongst the world’s 20 largest global oil and gas companies, bringing greater access to capital markets to enable funding for new and existing opportunities. Importantly, the merger is also expected to create greater alignment across the LNG growth projects in PNG which would continue to support jobs, development, and investment in PNG.”
“Our outlook for the 2021 full year remains positive as we tighten our production guidance and maintain our operating cost guidance despite the additional costs associated with the management of the impact of COVID-19. Both LNG and oil markets remain strong, with spot LNG markets continuing to exhibit high volatility and record highs which is a supportive environment for market soundings in respect of new medium-and-longer term LNG sales contracts.”
“While our focus remains on mitigating the risk to our people and operations through strict adherence to COVID-19 protocols and the promotion of vaccination uptake in our workforce, Oil Search will also continue to play its part in PNG’s fight against COVID-19 through the provision of community vaccination and logistical support.”
Article courtesy of Oil Search
