The Papua New Guinea-focused oil and gas producer and PNG LNG stakeholder, Oil Search reported a drop in revenue for the first quarter of 2019.
The company noted its revenue reached $398.1 million, 21 percent below the revenue reported in the previous quarter.
Oil Search said the quarter-on-quarter decline was primarily due to the timing of LNG shipments, with three LNG cargoes, worth more than $35 million in revenue, on the water at the end of the period.
In addition, the average realized oil and condensate prices were 3 percent lower than in the prior quarter, at $62.35 per barrel, while average realized LNG and gas prices declined 7 percent to $10.15/mmBtu.
Speaking of the quarterly performance, Oil Search managing director Peter Botten said, “During the first quarter of 2019, Oil Search produced 7.25 million barrels of oil equivalent (mmboe), at a daily production rate similar to the fourth quarter of 2018.”
He noted that the PNG LNG project recorded another period of strong performance, producing at an average annualized rate of 8.8 mtpa for the quarter.
“Following the work undertaken at the Hides gas conditioning plant during the Highlands earthquake shut-in, this is the third consecutive quarter of production at or above 8.7 mtpa, with the project achieving an annualized production rate of 8.8 mtpa for the nine months to March 31, 2019, almost 30 percent above nameplate capacity and 6 percent above the annual production rate pre-earthquake,” Botten said.