Oil Search has recorded a first quarter production of 4.84 million barrels of oil equivalent (mmboe), 36 percent lower than in the previous quarter.
This drop is reflected in the shut in of Oil Search-operated production and the PNG LNG Project following the 7.5 magnitude earthquake that struck the PNG Highlands on 26 February 2018.
Oil Search has now revised its 2018 production guidance to 23 – 26 mmboe, while unit production costs are expected to be in the range of US$10.50 – 13.50 per boe and depreciation and amortisation charges are forecast to be between US$12 and US$13 per boe. Capital cost guidance has been reduced to US$425 – 520 million.
Meanwhile, the Oil Search-operated Central Processing Facility (CPF) resumed operations in late March, with oil production at Kutubu commencing at an initial rate of approximately 4,000 barrels of oil per day.
Production from the Kutubu fields is expected to progressively ramp up during April.
(Oil Search filepic)