Oil Search: PNG LNG deliveries on track

 AUSTRALIA’s third-largest oil and gas producer Oil Search (OSL) generated a net profit of A$169.3 million in the first quarter of the 2013 financial year.

The company announced this last Friday when outlining its strategy to optimise production and reserves at its producing oil and gas fields in PNG where more than 90% of its assets are located. 

OSL’s main growth asset is its 29% stake in the PNG LNG Project, which it said was on track to start deliveries in 2014. 

In its 2012 annual report, Oil Search said the project was 75% complete at the end of 2012, with many construction milestones achieved during the year.

The company expected first sales to transform the company into a significant LNG exporter and annually add about 19 million barrels of oil equivalent (mmboe) to its production base. 

“The LNG project would allow the company to quadruple its production base in the first full year of operation,” Oil Search said.

As well as pursuing expansion opportunities in PNG, Oil Search is also seeking to expand its exploration interests in the Middle East and North Africa.