CANBERA (dpa-AFX) - Oil Search Limited (OSH.AX) reported that its total production in the second quarter of 2018 was 5.40 million barrels of oil equivalent or mmboe, 12% higher than in the first quarter, reflecting the recommencement of production following the February PNG Highlands earthquake.
Based on current estimates, production for the 2018 full year is trending towards the upper end of the 23 - 26 mmboe production guidance range.
Total revenue for the quarter declined 11% to US$262.8 million. Total product sales were 9% lower than in the first quarter, due to the rebuilding of inventory and the timing of LNG shipments, with three LNG cargoes on the water at the end of the quarter. While the average realised oil and condensate price was 3% higher than in the first quarter, the second quarter LNG and gas price was 4% lower, due to a higher proportion of LNG cargoes sold on the spot market following the earthquake.
PNG LNG production increased 23% to 4.9 mmboe, which was partly offset by lower production from Oil Search's operated oil and gas fields, with the Agogo Production Facility (APF) remaining shut-in due to damage sustained during February's devastating earthquake. Total hydrocarbon sales declined 9%, due to the rebuilding of inventory, which had been run down following the earthquake, and the timing of shipments, with three LNG cargoes on the water at the end of the quarter.
Copyright RTT News/dpa-AFX