LNG production to increase, oil to slump

Oil Search Managing Director, Peter Botten, has predicted a significant production of LNG for 2017.

Speaking during the company’s 2017 Annual General Meeting recently, Botten revealed how LNG production is expected to increase.

These, he says follows the announcement of increases in OSH’s PNG LNG Project reserves last year with ‘Proved (1P)’  reserves up by 50 per cent while ‘Proved plus Probable (2P)’ reserves increased by 12 per cent.

So far in quarter one of 2017 a production of 8.3 metric tonnes per annum (MTPA), which is 20% above nameplate, was recorded.

Meanwhile, oil production is expected to drop this year according to the CEO.

In 2016 oil production was recorded at 30.24 million barrels oil equivalent (mmboe).

“If we look at the 2017 production forecast, we see its pretty well flat with what we had in 2016,” he said.

“We see some small declines in the oil production but a significant increase in LNG as I mentioned with over capacity coming through that plant.

“Now 2017 therefore were looking (at) 28.5 to 30.5 million barrels oil equivalent.”

Cedric Patjole