January 24, 2018

Oil Search records Revenue Increase in final quarter of 2017

Oil Search Limited has seen a 17 per cent increase (K4.6 billion) higher than in 2017 for its total revenue.
This resulted from the oil and condensate price in the fourth quarter of 2017, which was at K204 (US$63.05) per barrel, up 20 per cent on the third quarter, reflecting the strength in global oil prices.
Managing director, Peter Botten said “this, together with a 5 per cent increase in our realised LNG and gas price, helped lift fourth quarter revenue to K 1.2 billion (US$389 million), driving total revenue for the year to US$1.45 billion K4.6 billion, 17 per cent higher than in 2017.”
The company also recorded a total of 7.59 million barrels of oil equivalent (mmboe) in the final quarter of 2017.
This as enable the full production for the year to 30.31 mmboe, a record for the company says managing director Peter Botten.
Mr Botten said Oil Search has finished strongly in 2017 with exceptional results which were at the upper end of its guidance range and an all time record.
He said the PNG LNG project also delivered another solid quarterly performance with the project operating at an annualised rate of approximately 8.3 MTPA, despite a short rate reduction in October related to the second phase of LNG plant compressor upgrades.
In November, Oil Search announced the proposed acquisition of a 25.5 per cent interest in the Pikka unit and adjacent acreage and 37.5 per cent in the horseshoe block, on the Alaska North Slope, for K1.3 billion (US $400 million), with the option to double its interests by mid-2019 for an additional K 1.5 billion (US$ 450 million).
The acquisition was made on the basis that the Pikka unit contains a discovered resource of 500 million barrels, compared to an estimate of 1.2 billion barrels by the existing JV partners.
Oil Search will take over operatorship in the first quarter of 2018 and plans to undertake an active appraisal ahead of a planned FID in late 2019.
“The acquisition, which is expected to be completed within the next month, represents an entry into tier 1 assets that have potential to generate material growth with high returns and complements the company’s existing high quality gas assets in PNG,” Mr Botten said......read more on >> Pacific Mining Watch