The $US19 billion PNG LNG project remains on track and is progressing better than anticipated. Operator Exxon Mobil announced that production will be higher this year. Production forecasts released by Oil Search show an increase of two million mboe based on successful drilling.
Holding a 29% stake in the PNG LNG project, Oil Search expects to produce more oil and gas in 2014 than previously forecasted. The company lifted its 2014 production guidance from a range of 10 to 13 million barrels of oil equivalent (mmboe), to between 12 and 15 mmboe. With over 90 percent complete as of December 31, 2013 the PNG LNG project remains on budget and on track for first LNG sales in the second half of 2014.
“Oil Search closed the 2013 financial year on a very positive note, with strong production in the second half resulting in full year production above guidance,” Oil Search managing director Peter Botten said.
