Oil Search’s quarterly revenue more than doubles on LNG price surge
Papua New Guinea-focused Oil Search Ltd said on Tuesday its third-quarter operating revenue more than doubled, as a global energy crunch lifted prices of oil and liquefied natural gas (LNG). Like its global peers, the Australia-listed company has benefited from crude and LNG prices surging in recent months, as economies reopening from coronavirusrelated lockdowns power fuel demand. “Both LNG and oil markets remain strong, with spot LNG markets continuing to exhibit high volatility and record highs,” said Acting CEO Peter Fredricson in a statement. The company sealed a deal last month with rival Santos for a proposed merger to create a global top 20 oil and gas company, which shareholders are set to vote on later this year. Operating revenue was $408.8 million for the three months ended Sept. 30, up from $189 million a year earlier. That compared with forecasts from RBC Capital Markets and UBS of $375 million and $425 million, respectively. The strong commodity prices helped revenue grow despite a 5.5% drop in quarterly production to 6.9 million barrels of oil equivalent, which was in line with forecasts. Oil Search trimmed its 2021 production estimate at its Hides gas-to-electricity 10/27/21, 10:56 AM Oil Search Ltd: Oil Search’s quarterly revenue more than doubles on LNG price surge, Auto News, ET Auto Lubes Oil Search Ltd oil demand LNG prices LNG price surge fuel demand crude oil brent crude project to between 0 and 0.2 mmboe from a prior estimate of 0 to 1 mmboe, due to an ongoing shut-in of the Porgera gold mine in Papua New Guinea, supplied by Hides. It said ExxonMobil Corp, operator of its key PNG LNG project, and the PNG government aim to complete a gas agreement for the P’nyang project before the end of the calendar year. Exxon and its partners had earlier intended to develop P’nyang to feed a new processing unit, or train, at the two train PNG LNG plant. But talks on the P’nyang project fell apart in late 2019 amid a dispute between the PNG government and Exxon
