Oil Search Limited (ASX:OSH) has boosted its annual output forecast just one week after welcoming the first shipment of liquefied natural gas (LNG) from the $US19 billion PNG LNG Project ahead of schedule.
The company now expects to deliver full-year production of between 17 million to 20 million barrels of oil equivalent (mmboe). The new guidance improves from an earlier forecast of between 14.5 million to 17.5 million barrels of oil equivalent.
Oil Search has also lowered its forecast cash operating costs to between $US18 to $US22 per barrel, down from prior guidance of between $US21 to $US26 per barrel.
Managing Director Peter Botten says the start up of production and sales from the PNG LNG Project has progressed well. Mr Botten has also highlighted the company’s most recent milestone with the arrival of the first LNG cargo to Tokyo Electric Power Company Inc. in Japan earlier this week.
Shares in Oil Search closed 0.95 per cent lower at $9.35 ahead of the announcement’s release after the market closed yesterday.
Oil Search reported a net profit of $230 million in the 2013 calendar year.
