Oil Search: PNG LNG hits record quarterly production, 28 LNG cargoes sold

Oil Search: PNG LNG hits record quarterly production, 28 LNG cargoes sold

ExxonMobil-operated US$19 billion PNG LNG project achieved the highest quarterly production since the start of operations, reaching an annualised rate of approximately 8 mtpa in the first quarter 2016.

This is a rise compared to the 7.6 mtpa in the last quarter of 2015, and 16 percent above the nameplate capacity, Oil Search informed in its quarterly report.

In total, the first quarter production of 7.72 mmboe was the highest in the company’s history, 3 percent up on the fourth quarter of 2015, according to Oil Search Managing Director, Peter Botten.

The PNG LNG project sold 28 cargoes during the quarter, four more than in the fourth quarter of 2015. According to the report, 24 cargoes were sold under long-term contract while four on the spot market, with two cargoes on the water at the end of the quarter.

Botten noted that a partial shutdown of the LNG plant occurred during April due to maintenance.

Sales revenue

Total sales revenue from LNG, gas, oil and condensate for the quarter was $298.9 million, 8 percent lower than in the fourth quarter of 2015, Oil Search said.

During the first quarter of 2016, 31,245 billion Btu of LNG was sold, 18 percent higher than sales volumes in the fourth quarter of 2015.

However, Oil Search added that the average price realised for LNG and gas sales declined 19 percent, to US$6.84 per mmBtu, due to weak spot oil prices in the fourth quarter of 2015, which impacted 2016 first quarter LNG contract prices. The effect was delayed due to an approximately three month lag in contract pricing terms.

The weakness in global oil prices continued, particularly in January, when Brent dipped below US$30 per barrel for the first time in 12 years.

 

LNG World News Staff

Share this article

Follow LNG World News

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – London / Nov 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

FLNG World Congress 2019

2019 FLNG World Congress will bring together stakeholders across the floating liquefaction value…

read more >

Budapest LNG Summit 2019

The Budapest LNG Summit is a niche event focused on the up and coming LNG region of Central & Eastern Europe (CEE).

read more >