Last year’s H2 oil exports worth US$714.74m
By FRANK ASAELI
THE gross value of Papua New Guinea crude oil exports from July to December last year was around US$714.74 million (K1,976.06 million), the Department of Petroleum and Energy (DPE) reported.
According to the average Kutubu price for the six months period of US$83.51 (K230.88) per barrel and with a six-month’s ANZ Bank (PNG) average kina to US dollar exchange rate of US$0.3617 the equivalent value in kina is approximately K1.976 billion.
DPE released a report earlier this year signed by DPE Secretary Rendle Rimua providing an analysis of the oil price movements during July and December last year and the reasons behind the movements.
And one of the reasons was that international crude oil prices had generally risen during the second half of last year, surging to historical record heights above US$100 (K276.47) per barrel towards the end of the year.
PNG crude oil produced and exported for the six months was about 8.56 million barrels, with a slight increase of 0.26 million barrels from the first six months from January to June 2007 figure of 8.30 million barrels.
This increase in production reflects the extended test production (EPT) from NW Moran and SE Mananda fields although there is a natural decline experienced in the other fields.
The report said the month of August experienced decreases, however, oil prices regained strength in September and continued the upward trend with minor fluctuations because of the world market volatility to the end of the year with a six months’ record average of more than US$80 (K221.17) per barrel.
Asian petroleum price index (APPI) quoted crude prices for Tapis, Kutubu and Dubai were on average at US$76.08, US$75.36 and US$69.47 in July and ended on average at US$100.85, US$98.67 and US$85.82 in December last year.
The six months’ average for Tapis, Kutubu and Dubai were US$85.28, US$83.51 and US$76.42 respectively.
In comparison to the first six months period of 2007, all prices gained on averages with Tapis 24.35%, Kutubu 23.79% and Dubai 27.79% with Dubai gaining more than the other two but traded lower than other lighter sweet crude oil.
The six month’s record high prices were attributed to factors such as paper oil speculators, geopolitical events in the Middle East especially the Iran nuclear station, the Iraq situation, Pakistan strike, lower inventory in the US, the Venezuelan presidency referendum and colder seasons during winter.
It is estimated that the prices will continue to remain this trend through to the first quarter of this year.
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