Oil Search reported strong H1 results, underpinned by the continued optimisation of PNG LNG production. Higher realised prices and lower costs also contributed to a half year net profit of US$129 million. This was higher than the full year 2016 result and resulted in an increased dividend of US$0.04 per share.
With PNG LNG continuing to perform above nameplate capacity, 2017 production guidance has been upgraded. A strategic focus is LNG expansion, and the partners (Oil Search, ExxonMobil and Total) are aiming to present a development concept for the Elk-Antelope and P'nyang fields to the PNG Government in Q4 2017. Resource capture to support expansion is ongoing, with further appraisal planned at P'nyang South 2 (Q4 2017) and Murak 2 (early 2018).
The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.
This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.
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Company report | Aug 2017
Oil Search corporate - reported results analysis
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