Oil Search Q3 Revenue Beats Forecasts


MELBOURNE, Oct 18 (Reuters) - Papua New Guinea-focused Oil Search reported a 16 percent rise in third quarter revenue over the previous quarter, thanks to a rise in oil and gas prices and higher volumes, ahead of analysts' forecasts.

Revenue rose to $309.5 million in the September quarter from $267.7 million in the June quarter. Two analysts had expected revenue of around $290 million.

Sales volumes rose 4 percent to 7.5 million barrels of oil equivalent (mmboe) from the previous quarter, despite a small drop in output in August due to a landholder protest. UBS and RBC analysts had expected sales of 7.4 mmboe.

The company said production was trending toward the top end of its forecast range for 2016 of 28-30 mmboe.

The PNG LNG (liquefied natural gas) project, operated by ExxonMobil Corp, produced at an annual rate of 8.1 million tonnes in the quarter, its highest rate since production began two years ago and 17 percent above its nameplate capacity, Oil Search said.

ExxonMobil Corp trumped Oil Search in July with a $2.5 billion bid for InterOil Corp in a push to consolidate PNG LNG with the rival Papua LNG project owned by French giant Total, InterOil and Oil Search.

"We look forward to commencing discussions regarding a cooperative development agenda with Total, ExxonMobil and the PNG Government prior to year-end," Oil Search Managing Director Peter Botten said in the quarterly report.

(Reporting by Sonali Paul; Editing by Richard Pullin)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Columbia, SC
Project Manager
Expertise: Engineering Manager
Location: Atlanta, GA
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Raleigh, NC
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours