Oil Search Release Third Quarter Results

by Meriba Tulo – EM TV News, Port Moresby

Oil Search has recorded a 3 per cent revenue decline in the third quarter for 2015 – this coming despite the company recording its highest quarterly production.

The results, released to the market today reflect the effects of the continuous drop in oil prices on companies within the extractive industry.

According to Oil Search Managing Director, Peter Botten, the third quarter production of 7.42 million barrels of oil equivalent (mmboe) was the highest quarterly production ever achieved by the company, being marginally higher than the record production reached last quarter.

This, he said, reflects the continued strong production from both the PNG LNG Project and from the companies operated oil fields.

It has been an eventful period for Oil Search, with the company recently rejecting an acquisition bid from Australian energy giant, Woodside.

In September, Oil Search received a non-binding, conditional indicative proposal from Woodside Petroleum under which Woodside would acquire all shares in Oil Search for a consideration of one Woodside share for every four Oil Search shares held.

According to Botten, “The proposal was highly conditional, being subject to the completion by Woodside of satisfactory due diligence on Oil Search, the execution of a mutually acceptable confidentiality agreement, Oil Search granting an agreed period of exclusivity, Oil Search obtaining support from key stakeholders and shareholders and Woodside being satisfied that the transaction was likely to be supported by the PNG Government on acceptable terms”.

The Oil Search Board unanimously rejected the approach.

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