Oil Search cuts 2019 production outlook on mooring system damage
Australia-listed Oil Search Ltd on Tuesday posted a 24% drop in quarterly revenue and cut its 2019 production guidance, after damage to a mooring system dented output.
Papua New Guinea’s biggest company restricted production in August after damage to the mooring system at a facility in the Gulf of Papua.
The oil and gas explorer said it now expects 2019 full year production of 27-29 million barrels of oil equivalent (mmboe), from an earlier forecast of 28-31 mmboe.
Production for the three months to end-September slipped 10% to 6.81 million barrels of oil equivalent (mmboe) - its lowest September quarter output since 2014.
Quarterly revenue fell to $361.1 million from $474.9 million last year, which the company blamed on lower sales and weaker liquefied natural gas (LNG) and oil prices.
Oil Search said repairs to the damaged mooring chain had been completed successfully in mid-October and normal loading operations have now resumed, with production ramping up.
The company is gearing up for its next stage of development with a planned $13 billion project to double LNG exports from Papua New Guinea.
One leg of the project, which Oil Search co-owns with Total SA and Exxon Mobil Corp, was sanctioned by the government in September, relieving uncertainty stemming from new leader James Marape’s agenda for the state to earn more from its resources sector.