Firm reports increase in revenue


OIL Search has recorded a 16 per cent increase in total revenue in the third quarter – mostly driven by its exported natural gas.
Managing director Peter Botten, pictured, said in the company’s third quarter report that total operating revenue rose to US$309.5 million (K966.57m), driven by a 4 per cent lift in hydrocarbon sales and a 23 per cent increase in the average realised LNG and gas price.
He said this was achieved despite a 3 per cent fall in the average realised oil and condensate prices to US$47.24 (K147.53) per barrel, reflecting slightly weaker global oil prices.
“The third quarter of 2016 was another very strong period operationally for Oil Search,” Botten said.
“Despite continued low oil prices, Oil Search generated positive cash flows during the quarter.
“The company’s cash balance increased from US$780 million (K2435.9m) to US$939 million (K2932.49m).
“And with no PNG LNG project finance facility principal payments due during the period, net debt declined from US$3304 million (K10,318.4m) to US$3145 million (K9821.80m), highlighting the strong cash flows generated from operations.
“Total production was 7.63 million barrels of oil equivalent (mmboe).
“This was 6 per cent higher than in the second quarter and the second highest quarterly production in Oil Search’s history – only 1 per cent lower than the all-time record level achieved in the first quarter of 2016.”

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