Oil Search Q1 revenue falls on previous qtr as soft oil, gas prices hurt
(Adds P'nyang gas agreement timing, graphic, details)
April 16 (Reuters) - Australia's Oil Search said on
Tuesday its first-quarter revenue fell 21 percent from the
preceding quarter, due mainly to the timing of liquefied natural
gas (LNG) shipments and weaker oil and gas prices.
The Papua New Guinea-focused energy group reported revenue
for the three months to March of $398.1 million, while
production declined 3 percent from the December quarter to 7.25
million barrels of oil equivalent.
The company's key focus remains on expansion plans for the
PNG LNG project - with a 2020 sign-off in the works for the
venture which is the resource-rich nation's top revenue earner.
On Tuesday, it said a gas agreement for the P'nyang field is
targeted for signing in the second quarter. P'nyang is a new
field which would feed gas to a third train that Exxon Mobil
plans to add at PNG LNG.
For the March quarter, realised oil and condensate prices
fell 3 percent and the realised LNG and gas price was 7 percent
lower than in the fourth quarter of 2018, Oil Search said.
Its first-quarter revenue was still up a 35 percent from the
same period last year, when a devastating earthquake in Papua
New Guinea crimped production.
Further out, China's recent pledge to move away from coal
will see the world's No. 2 economy rely more on gas - an
appealing prospect for Australian LNG exporters which have
scaled up investment into new projects, anticipating the uptick
in Asian demand.
Oil Search shares eased 0.9 percent in morning trade
compared with a 1.5 percent decline in the Australian energy
(For an interactive graphic on Australia's LNG exports since
March 2016 and revenue performance of Woodside, Oil Search and
Santos, see https://tmsnrt.rs/2I8vdiS)
(Reporting by Devika Syamnath in Bengaluru; editing by Richard
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