Oil and Gas News

Oil Search records 4% production boost

Oil Search has reported that total company production during the second quarter was 7.89 million barrels of oil equivalent (mmboe), including 6.4 mmboe from the Papua New Guinea LNG project.

The PNG LNG project produced at an annualised rate of 8.8 million tonnes per annum during the second quarter. In addition, 0.89 mmboe was produced from Oil Search-operated assets.

Oil Search’s oil production increased by 14 per cent and was offset by a lower contribution from the Hides gas-to-electricity (GTE) project in PNG.

The company’s production for the first half of 2020 increased by 4 per cent compared with the same period of 2019, with a total of 14.66 mmboe.

Following the suspension of P’nyang gas agreement negotiations in January, Oil Search held informal discussions with the PNG Government during the quarter, with the company aiming to reach alignment on terms that are fair and balanced.

“These exploratory discussions were completed in May and the PNG State and ExxonMobil then re-engaged on the P’nyang gas agreement. Due to COVID-19 and its impact on oil and gas prices, Total and ExxonMobil have demobilised the majority of their LNG expansion technical and commercial staff,” Oil Search outlined in a quarterly report.

Oil Search managing director Keiran Wulff said the company made material steps during the quarter to enhance the company’s resilience to withstand lower oil prices without comprising its ability to progress growth projects when conditions allow.

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