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Oil Search cofident LNG production will increase

Staff Reporter | 10:43 PM | |
OIL Search managing director Peter Botten says the company is confident that production from PNG LNG project will be higher than expected this year.
Botten said this following the company’s announcement of its highest total LNG production in its 2015 second quarter results, with 7.41 million barrels of oil equivalent (mmboe) recorded, a result that was 7 per cent higher than the previous quarter and the highest quarterly production recorded, according to Botten.
He said the PNG LNG plant’s current performance would see production exceed the 6.9 million tonnes that was expected annually.
“Total production of 7.41 mmboe for the quarter was the highest quarterly production ever achieved by the company,” he said.
“This excellent result reflected further production increases from the PNG LNG project, combined with a solid performance from our operated oil fields.
“The PNG LNG project’s contract customers continued to take their full contractual volumes and the project was successful in selling all its
additional spot cargoes during the period.
“In June, we celebrated the delivery of the 100th LNG cargo from the project, achieved in just over one year from the start of export operations, underscoring PNG LNG’s reputation as a reliable.
“Total production for the first half of 2015 was 14.3 mmboe, nearly three times higher than in the same period of 2014.
“Based on the strong first half production performance, the company now expects 2015 full year production to be between 27-29 mmboe, up from the previous guidance range of 26-28 mmboe producer of gas,” Botten said.
Despite the high production in the second quarter, results for Oil Search showed total revenue was US$391.5 million (K1.054bn), which was a 17 per cent fall from the first quarter result of US$472.3 million (K1.271bn), while total operating revenue for the first half of 2015 stood at US$863.8 million (K2.323bn), 69 per cent higher than in the first half of last year. The National