Australian oil and gas explorer Oil Search on Jan. 22 said it expected much stronger production in 2019, and clocked a 29% jump in its fourth-quarter revenue.
The Papua New Guinea-focused company said it expects total production of 28 million to 31.5 million barrels of oil equivalent (MMboe) in fiscal 2019, compared with its 2018 guidance range of 25 MMboe to 26 MMboe.
Total revenue for the quarter to Dec. 31 rose to $503.1 million from $389 million in the same quarter a year earlier, the company said, while production for the quarter fell to 7.44 MMboe from 7.59 MMboe. Revenue growth was driven primarily by stronger sales and realized prices.
Annual production came in at 25.21 MMboe.
The company said the average realized oil and condensate price was $64.45 per barrel over the quarter, compared with $63.05 a year earlier, while the average realized gas and LNG price rose to $10.96 per million Btu (MMBtu) from $7.86 per MMBtu.
Global oil prices plunged nearly 35% in the December quarter, their worst quarterly drop in four years, amid concerns over a slowdown in global growth and demand for the fuel.
In November, the Papua New Guinea government agreed to finalize terms in 2019 for an expansion led by France’s Total SA (NYSE: TOT) and Exxon Mobil Corp. (NYSE: XOM) of the PNG LNG project that Oil Search has a stake in.
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