Papua New Guinea’s oil and gas producer, Oil Search, has released its 2014 fourth quarterly report that reveals the company’s production for the year 2014 was the highest annual production in the company’s history thanks to the ‘transformational impact’ of their stake in the PNG-LNG Project.
Oil Search’s stake in the PNG-LNG Project contributed 5.49 millions of barrels of oil equivalents (mmboe) net in the fourth quarter of 2014, bringing 2014 full year production to 12.20 mmboe.
“This brought 2014 full year production to 19.27 mmboe, the highest annual production achieved in the company’s history, reflecting the transformational impact of the PNG-LNG Project on Oil Search’s production profile.”
The company’s quarter total sales valued at US$562.1 million, 4% higher than the third quarter and 168% higher than 2013’s fourth quarter.
The record full year production also put total sales for the year at US$1,610.4 million, more than double the revenue from the previous year and ‘again a record for the company.
Despite the sharp decline of oil prices in the recent months, managing director Peter Botten says ‘the company remains resilient and well positioned to weather the lower oil price environment, with the majority of our production portfolio profitable at current oil prices’.
The group announced that by the end of December 2014, the company had cash of US$960 million and a debt of US$4,412.2 million, comprising US$4.2 billion drawn down from the PNG-LNG Project facility and US$150.0 million from the company’s corporate facilities.
Oil Search also says by that time their total liquidity was at US$1,560.2 million.