Photo Credit: Oil Search
Oil Search reported operating revenue of US$366.2 million (K1 billion) in the second quarter, up 21.5 percent from the first quarter (Q1).
Other noteworthy features include:
- Oil output from operational fields increased by 4.6 per cent in the second quarter, owing to Moran's strong performance.
- PNG LNG output averaged 8.0 MTPA (gross), delivering a strong quarter of non-operated production.
- Total output of 6.6 million barrels of oil equivalent (mmboe) was down 4.1% from Q1 due to maintenance work;
- In Q2, work on Papua LNG's technical, commercial, and financial aspects began;
- The PIKKA project FEED is still going strong, with FID contingent on proper risk allocation and finance.
- So far, there have been no Covid-19 instances in Oil Search PNG field activities
- Continuing to provide supply chain and logistical support to the Government's Covid-19 response through a PNG industry task team, as requested; and
- In comparison to March 2021, net debt has decreased by 5.3%.
Oil Search produced good production in the most recent quarter, according to acting CEO Peter Fredricson, "backed by the operator, ExxonMobil, safely completing the large scheduled maintenance campaign at PNG LNG."
“Operated production from our Moran and Agogo fields continues to perform strongly and operated gas production was able to offset some reduced production from the Hides Gas conditioning plant during upstream maintenance activities,” he said.
“The macro-environment helped drive an increase in revenue despite the planned rate reduction at PNG LNG during the quarter.
“Sales volumes were broadly similar to the first quarter due to careful inventory management and flexibility from using the spot market.
“While the Covid-19 outbreak continues to impact Papua New Guinea, strict operating procedures and logistical measures have ensured continued safe and reliable production with no impacts to Oil Search or ExxonMobil operated production facilities.”
Reference: The National (28 July 2021). “Oil Search records US$366mil second quarter revenue”.
