Oil Search says revenue jumps on higher LNG prices

Papua new Guinea-focused Oil Search said its revenue more than doubled in the third quarter on the back of higher realized LNG prices.

Oil Search, which has a 29 percent stake in the PNG LNG project, said its operating revenue has reached $408.8 million in the July-September period. This compares to $189 million in the same period a year ago and $366.2 in the previous quarter.

The firm attributed the increase in revenue primarily to a rise in average realized LNG and gas prices.

According to Oil Search, LNG and gas realized prices increased 16 percent to $10.02/mmBtu when compared to the prior quarter. Prices surged when compared to 4.23/mmBtu in the third quarter of last year.

Also, compared to the prior quarter, total production increased by 5 percent to 6.9 mmboe when, but it dropped when compared to 7.2 mmboe in the same period last year.

PNG LNG continues to produce above capacity

The ExxonMobil-led PNG LNG project continued to perform 20 percent above nameplate production, averaging 8.5 mtpa in the third quarter.

The project’s annualized production rate reached 8 mtpa in the May-June period due to planned maintenance work.

Oil Search the project has delivered 30 LNG cargoes during the third quarter, compared to 26 in the prior quarter.

Santos said in its quarterly report, where it also revealed the FID on the Angore development project, that the project had delivered 29 LNG cargoes to customers during the quarter.

However, Oil Search said that PNG LNG has also supplied one partial cargo.

Out of the 30 cargoes, PNG LNG sold one shipment on the spot market and 29 cargoes under contract, including five under mid-term sale and purchase agreements, the firm said.

Merger with Santos

Oil Search and Santos have recently entered into a definitive merger deal that would create an LNG player worth about A$21 billion ($15.5 billion). Combined, they will have a 42.5 percent stake in PNG LNG.

The partners expect to complete the merger by the end of this year.

Next steps include the first court hearing in PNG and despatch of documents related to the scheme to Oil Search shareholders, the firm said.

“While the absolute focus of our workforce remains on safely delivering our strategic objectives, important steps were also taken during the quarter to advance the opportunity presented by the proposed merger with Santos,” Peter Fredricson, Acting CEO of Oil Search, said.

“The potential benefits of a combined entity remain clear, with the merged entity expected to sit amongst the world’s 20 largest global oil and gas companies, bringing greater access to capital markets to enable funding for new and existing opportunities,” he said.

- Advertisements -

Most Popular

US weekly LNG exports down to 22 shipments

US liquefied natural gas (LNG) exports decreased in the week ending April 10 compared to the week before, according...

Spot LNG shipping rates, European prices drop this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet decreased further this week, and European prices...

Spot LNG shipping rates continue to drop, European prices climb

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet continued to decrease this week, while European...

More News Like This

Santos, Kumul amend PNG LNG deal

Australian LNG player Santos has agreed to amend the terms of sale of its 2.6 percent stake in the...

Kumul secures funding to buy PNG LNG stake from Santos

Papua New Guinea’s national oil and gas company Kumul Petroleum has secured funding to buy a 2.6 percent stake...

Santos sells 2.6 percent stake in PNG LNG to Kumul

Australian LNG player Santos has signed a binding deal to sell a 2.6 percent stake in the PNG LNG...

TotalEnergies sells Papua LNG stake to JX Nippon

France's TotalEnergies, one of the world's largest LNG players, has sold a small stake to Japan's JX Nippon Oil...