Oil Search Expects Tough Year Ahead

Shruti Sonal and Nikhil Subba
Wednesday, January 27, 2021

Papua New Guinea-focused Oil Search Ltd said on Wednesday it expects 2021 to be another challenging year and forecast lower annual output due to planned maintenance activity at the PNG liquefied natural gas (LNG) plant.

The Australia-listed company said it expects annual production of between 25.5 million barrels of oil equivalent (mmboe) and 28.5 mmboe, lower than the 29 mmboe it churned out in 2020.

"We expect that 2021 will continue to be another challenging year," Managing Director Keiran Wulff said, adding that the company will maintain operational discipline despite the difficult conditions.

Oil Search, which slashed costs and axed a third of its workforce last year to weather the weakness in oil prices, estimated total investment expenditure for the year between $325 million and $445 million.

Its revenue plunged nearly 42% in the three months ended December to $259.5 million. However, the figure beat an estimate of $246 million from RBC Capital Markets.

Quarterly output inched up to 7.06 mmboe, from 7.01 mmboe a year earlier.

(Reporting by Shruti Sonal and Nikhil Subba in Bengaluru; Editing by Aditya Soni)

Categories: Energy Industry News Activity Production Asia

Related Stories

Subsea7 Secures Work at Black Sea Field off Türkiye

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

PXGEO Nets First Seismic Survey off Malaysia

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

CNOOC Brings New Offshore Gas Field On Stream

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

Indonesia's Medco Starts Production at Natuna Sea Fields

Current News

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com