Oil Search doubles total revenue in second quarter

 OIL Search has doubled its total revenue to US$339.7 million (K813.7 million) in the second quarter.

Total oil and gas production in the period was 3.69 million barrels of oil equivalent (mmboe) compared to 1.68 mmboe in the previous corresponding period.

The company said the increased production reflected the impact of the start-up of the LNG project.

Oil Search said production from the PNG LNG was 1.87 mmboe, while other businesses contributed 1.802 mmboe, 8% higher than in first quarter of this year.

Managing director Peter Botten said the highlight of the second quarter was the start of production and sales of LNG from the project.

He said this was a major milestone for Oil Search, it co-venture partners and Papua New Guinea. 

“It marked the completion of the country’s largest resource project, which is expected to more than double PNG’s gross domestic product and transform the country into a significant supplier of LNG to key neighbouring Asian markets. 

“Delivering this world scale project, ahead of schedule, was the culmination of many years of effort by the operator, ExxonMobil PNG Ltd, and its co-venture partners, with significant support from the PNG government and local communities.

“Work continues on aggregating gas to support a potential expansion of PNG LNG as well as a potential LNG development based on the Elk/Antelope gas fields.

“Income from the PNG LNG Project, together with continued steady cash flows from our oil fields, will enable us to pursue these and other potential growth opportunities, such as the Taza oil field in Kurdistan, as well as deliver higher dividends to shareholders in the years ahead.”