Oil Search records US$366mil second quarter revenue

The National Business

OIL Search has recorded a second quarter operating revenue of US$366.2 million (about K1 billion) – up 21.5 per cent from the first quarter (Q1).
Other highlights include:

  • OIL production from operated fields was up 4.6 per cent from the first quarter, driven by performance of Moran;
  • DELIVERED a solid quarter of non-operated production – PNG LNG production averaged 8.0 MTPA (gross);
  • TOTAL production of 6.6 mmboe – down 4.1 per cent from Q1 because of maintenance works;
  • THE Papua LNG technical, commercial and financing work underway in Q2;
  • PIKKA project FEED continues, FID subject to appropriate risk allocation and funding;
  • NO Covid-19 cases to date in Oil Search PNG field operations;
  • CONTINUING to assist the Government Covid-19 response through a PNG industry task force with supply chain and logistics as requested; and,
  • NET debt reduced 5.3 per cent compared to March 2021.

Acting chief executive officer Peter Fredricson said Oil Search delivered strong production in the latest quarter, “supported by the safe completion of the major planned maintenance campaign at PNG LNG by the operator, ExxonMobil”.
“Operated production from our Moran and Agogo fields continues to perform strongly and operated gas production was able to offset some reduced production from the Hides Gas conditioning plant during upstream maintenance activities,” he said.
“The macro environment helped drive an increase in revenue despite the planned rate reduction at PNG LNG during the quarter.
“Sales volumes were broadly similar to the first quarter due to careful inventory management and flexibility from using the spot market.
“While the Covid-19 outbreak continues to impact Papua New Guinea, strict operating procedures and logistical measures have ensured continued safe and reliable production with no impacts to Oil Search or ExxonMobil operated production facilities.”