Oil Search (ASX:OSH) 2019 Q3 production drops

Company News

by Anna Napoli

Oil Search (ASX:OSH) has seen its total production for the third quarter of 2019 decline to 6.8 million barrels of oil equivalent, down 10 per cent on the year earlier period.

The mining giant says strong PNG LNG Project production rates in July were offset by impact of mooring buoy damage in August / September.

Production from the PNG LNG Project and the Oil Search-operated oil fields was curtailed during part of August and in September, due to reduced rates of liquids loading following the detection of damage to one of the mooring chains at the Oil Search-operated offshore liquids loading facility in the Gulf of Papua.

Total sales were also lower, down 13 per cent on the year earlier period to 6.47 million barrels of oil equivalent.

Revenue for the quarter reflected lower product sales and timing of shipments, with three LNG cargoes on the water at the end of the quarter, weaker global oil prices and a higher proportion of condensate relative to oil in the product mix.

Full year guidance has been downwardly revised to 27-29 mmboe 27 – 29 mmboe, from 28 – 31 mmboe following the results.

Shares in Oil Search (ASX:OSH) are trading 0.42 per cent lower at $7.13.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.