OIL SEARCH has revised upwards its production guidance for 2014, underpinned by the early start-up of liquefied natural gas from the PNG LNG project.
The commencement of LNG production from train 1 in April and Train 2 in May ahead of schedule first prompted project operator ExxonMobil to revise its production forecast for the project.
Based on the new information, Oil Search said it had updated its production guidance for the 2014 full year while forecast cash operating costs on a barrel of oil equivalent had also been adjusted.
Oil Search is now anticipating output between 12-20 million barrels of oil equivalent, up from the original forecast of 14.5-17.5Mmboe.
In addition, cash operating costs are tipped to come in somewhere between US$18 -22 per barrel of oil equivalent, down from US$21-26/boe.
“The commencement of production and sales from the PNG LNG project has progressed well and I am pleased to report that another major milestone was reached yesterday, with the arrival of the first LNG cargo to Tokyo Electric Power Company Inc. in Japan,” Oil Search managing director Peter Botten said.
“We would like to congratulate the operator again for the safe and efficient execution of the start-up and ramp-up phase of the project.”