Oil Search of Papua New Guinea said its net profit in 2014 was at US$353.2 million, 72% higher than in 2013.
The rise in the company’s profit was driven by a near tripling of production to 19.27 mmboe, following the commencement of production from the PNG LNG project in April, the company said in a statement.
Oil search has a 29 percent stake in the ExxonMobil-operated PNG LNG project.
Total revenue more than doubled, to US$1.61 billion, driven by the PNG LNG project condensate and LNG sales in the first half of the year. The average realised price for LNG and gas was US$13.94 per mmBtu.
The company’s total proved and probable (2P) gas reserves and 2C contingent gas resources increased 25% to 5,812 bcf, the highest in its history, primarily due to the booking of 2C contingent resources for the Elk/Antelope fields in PNG.
2P oil and condensate reserves increased 2% to 95.9 mmbbl, largely driven by a 10.7 mmbbl net increase in Kutubu and Moran 2P liquids reserves, partly offset by 2014 annual production of 7.8 mmbbl.
In response to the substantial fall in oil prices over the past six months, Oil Search said it has reprioritised its 2015 work programmes, to focus on the company’s high-returning core LNG growth projects.
Overall, total 2015 planned capital expenditure has been reduced by approximately 20%, with exploration and evaluation spend down 25%, production capex down 20%, and corporate capex down by 40%.
LNG World News Staff; Image: Oil Search