Image: Oil Search Managing Director, Peter Botten (Business Advantage)
Oil Search has announced record oil and gas production in 2016.
The high oil and gas production of 30.24 million barrels of oil equivalent is a historical result in the company’s 88 years of investment in Papua New Guinea.
Oil Search Managing Director, Peter Botten, said the increase was driven by a high performance from the PNG LNG Project.
Oil Search enters 2017 in a strong operational and financial position. With large high-quality reserves and resource base, good cash flow and a strong balance sheet, Oil Search believes there is an opportunity to create substantial value for the Company, and its operating partners and PNG through the development of PNG’s LNG expansion projects.
Mr. Botten said production from the mature PNG oil fields was also better than expected.
However, the increase in product sales was offset by lower global oil and gas prices. Average realised oil and condensate price was down 12%, and the LNG and gas price 33% lower than in 2015.
Despite the weak oil and gas price environment, and ongoing expenditure on exploration during the year, the Company reduced its net debt position by nearly US$242 million over the year, highlighting the strength of the Company’s asset base.
Delivering on these new developments, and enhancing the existing producing assets, the key strategic objectives of Oil Search remain on looking for longer term growth opportunities and maintaining a stable operating environment.