Oil Search achieves record production levels

OIL Search achieved record oil and gas production levels in 2016, according to the company’s full-year results released yesterday.
The production figures are the highest in the company’s 88-year operations in the country.
This has been credited to the company’s exceptional performance on the back of the PNG LNG project, according to Oil Search managing director Peter Botten.
“The increase was driven by an excellent performance from the PNG LNG project, which produced at an average rate of 7.9 million tonnes per annum (MTPA) during the year, compared to nameplate capacity of 6.9 MTPA,” Botten, pictured, said.
“Oil Search reported a core profit in 2016 of US$106.7 million (K338.7m).
“Annual production of 30.24 mmboe and sales of 30.59 mmboe were the highest in the company’s history, up 3 per cent and 6 per cent respectively, on last year.”
Botten said the results were also helped by exceptional production from major Papua New Guinea oil fields.
The company also managed to reduce its debt levels by almost K1billion despite the decline in global oil prices and costly exploration and appraisal exercises.
“Despite the weak oil and gas price environment and ongoing expenditure on value-adding exploration and appraisal activities during the year, the company reduced its net debt position by nearly US$242 million (K768.25m) over the year, highlighting the strength of the company’s asset base,” he said.
“At the end of 2016, Oil Search had a total liquidity of US$1.61 billion (K5.11bn). Together with strong cash flows from our operations, this is more than sufficient to fund all current committed activities, including expenditures on progressing our highly competitive LNG expansion opportunities.”