OIL Search has recorded a total production of 7.59 million barrels of oil equivalent (mmboe) in the fourth quarter of last year, taking the company’s full-year production to 30.31mmboe – a record for the company.In a market release yesterday, the company noted that Oil Search-operated PNG oil and gas fields also performed well, contributing 1.51mmboe net.
Total revenue for the quarter was US$389 million (K1.2bil), two per cent higher than in previous quarter, reflecting a strong improvement in hydrocarbon prices, partially offset by lower product sales.
Revenues for the full year totalled US$1.446 billion (K4.571bil), up 17 per cent on 2016.
Commenting on the report, Oil Search managing-director Peter Botten said: “Oil Search finished 2017 strongly, with fourth quarter production of 7.59mmboe, taking full-year production to 30.31mmboe, which was at the upper end of our guidance range and an all-time record for the company.”
He said last October, the second phase of scheduled compressor upgrades at the PNG LNG project plant site took place.
“Production rates picked up following this work, with the plant averaging 8.6 MTPA (metric tonnes per annum) in December,” he said.
“The upgrades to the compressors undertaken during 2017 should enable production to be maintained sustainably at or above 8.5MTPA, before factoring in normal levels of downtime.
“Our operated oil and gas fields in Papua New Guinea also performed well during the quarter, with production of 1.51mmboe net to Oil Search, largely unchanged from the third quarter.”
Meanwhile, Botten said in the first half of this year, modifications to the Hides gas conditioning plant in Hela were planned to further optimise production rates upstream.
“Oil Search expects to see production benefits from this in the second half of the year,” he said.
“Work on tying in the Angore A1 and A2 wells to existing project processing facilities remains ongoing, with the wells expected to come online in 2019.” The National
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