Oil Search boasts of highest quarterly production figures as Exxon’s PNG pays off

The PNG LNG project in Papua New Guinea
The PNG LNG project in Papua New Guinea

Papua New Guinea’s Oil Search has posted its highest quarterly production figures in the firm’s 88 year history.

The company produced 7.91 million barrels of oil equivalent (mmboe) in the last three months, a 9% increase on the second quarter of the year.

Total 2017 production is on track to reach the upper end of the 29-30.5 mmboe guidance range.

The increase was underpinned by an “excellent performance” from the PNG LNG Project, Oil Search said.

The firm has a 29% interest in the PNG LNG Project, which is operated by ExxonMobil PNG Limited and came on stream in 2014.

Total revenue for the quarter was $380.8million, 15% higher than in the previous quarter.

Oil search said the P{‘nyang South 2 well is ready to spud, with a drilling rig on site and expected to start drilling “shortly”.

The Muruk appraisal is ongoing, and is expected to spud towards the end of the first quarter next year.

Oil Search managing director Peter Botten, said: “Oil Search delivered an all-time record quarterly production of 7.91 mmboe in the third quarter, taking production for
the nine months to 30 September 2017 to 22.72 mmboe.

“This excellent result was driven by higher production from both the PNG LNG Project and our operated fields.”