Oil Search production up by 4pc
Oil Search Ltd’s total production for the first half of this year was 14.66 million barrels of oil equivalent (mmboe), up 4 per cent in the first half of 2019.
According to the firm’s first half year result released this week, this reflected continued strong performance from the PNG LNG project and recovery of oil production to the highest level since the 2018 Highlands earthquake.
“Hydrocarbon sales increased 2 per cent to 13.66 mmboe, lower than production primarily due to the timing of LNG shipments,” according to the company.
“Due to the Covid-19 and the impact on global energy demand, oil and LNG prices were sharply lower, with realised LNG and gas prices falling 15 per cent and realised oil and condensate prices dropping 45 per cent, resulting in a 19 per cent fall in sales revenue. Unit production costs for the first half were US$10.38 (K35.55) per boe (barrels of oil equivalent), 20 per cent lower than in the first half of 2019.
“The lower unit production costs benefited from higher production and a 17 per cent reduction in the total cost base.
“Other operating costs of US$45.8 million (K156.88mil) were down 11 per cent, mainly due to lower royalties reflecting lower commodity prices, reduced third party purchases due to the suspension of operations at Hides gas to electricity and an increase in inventories.”