LNG’s sales revenue up 5pc last quarter: Oil Search

Total sales revenue from LNG, gas, oil and condensate for the last quarter rose five per cent to US$487 million (K1. 6 billion), according to Oil Search Ltd.
In its final quarter report, it stated that other revenue, comprising rig lease income, infrastructure tariffs, electricity, refinery and naphtha sales, increased from US$12 million (K40.3 million) to US$16.1 million (K54.1 million) reflecting higher naphtha sales volumes and one-off shipping income.
“During the quarter, 34,785 billion British thermal units (Btu) of LNG from the PNG LNG project were sold, four per cent higher than sales volumes in the third quarter of 2018,” the report said.
“A total of 31 LNG cargoes were delivered, comprising 25 cargoes sold under contract (including three under recently signed mid-term sale and purchase agreements), and six on the spot market, compared to 30 cargoes sold in the previous quarter.
“One cargo was on the water at the end of the period, compared to three at the end of the third quarter.
“Oil, condensate and naphtha sales volumes for the period totalled 1.50 mmbbl, 13 per cent higher than liquid sales in the previous quarter.
“Seven cargoes of Kutubu Blend and three naphtha cargoes were sold during the period.”
The report said that the average oil and condensate price realised during the quarter was US$64.45 (K217) per barrel, 15 per cent lower than in the third quarter, reflecting a weaker quarter for global oil prices. The average price realised for LNG and gas sales increased five per cent to US$10.96 (K37)/million British thermal unit (mmBtu), reflecting the approximate three-month lag between the spot oil price and LNG contract prices, as well as the continued strength in north Asian LNG demand, which supported the spot LNG price.
The company did not undertake any hedging transactions during the period and remains unhedged.