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Oil and gas producer, Oil Search Limited (ASX: OSH) has made significant progress in 2018/19 on its value-adding initiatives. In an update released on 30 April 2019, the company informed about the recent progress that it has achieved in the recent past. Recently, in April 2019, the company signed a Papua LNG Gas Agreement, defining the fiscal framework for the Papua LNG Project.
The company is now focusing to work with PRL 3 operator, ExxonMobil, and the State to close out an agreement with the State for the development of the Pânyang field with Pânyang Gas Agreement expected to be finalized in the second quarter of 2019.
Further, the company has successfully completed an inaugural drilling campaign in Alaska and it is now expecting a material upgrade in 2C oil resource. The company is expecting to enter Front End Engineering and Design (FEED) for the first phase Pikka Unit development in the second half of 2019.
While informing about the global LNG demand, the company noted that Global LNG demand grew 6% in 2018 to 320 MT. It is expected that the Global LNG demand will grow at 4.5% pa to 2030. Around 90 MTPA of uncontracted demand expected in 2025 with ~120 MTPA of new supply required by 2030. In response to the market requirement, the year 2018 witnessed the first large-scale capacity sanctions since 2015, with further FIDs expected in 2019.
At Muruk 2, the company has made a significant gas discovery, the testing has confirmed gas in pressure communication with Muruk 1 ST3. The company believes that the success at Muruk will provide field phasing optionality, given the proximity to existing Hides infrastructure.
The company has planned further seismic acquisition over Karoma/adjacent acreage in the fourth quarter of 2019, to de-risk future drilling prospects along HidesPânyang trend.
As per 2019 guidance, the company is expecting its total production in 2019 to be in the range of 28.0 â 31.5 mmboe. The company is expecting its total capital costs to be in between US$545 â 655 million. The companyâs total share of development costs from 2019 until the first production is estimated at around US$4.5 billion.
The company recently released its quarterly report for March quarter in which it reported total production of 7.25 mmboe for the march quarter, down by 3% on the previous corresponding period (pcp). Further the company reported total sales of 6.65 mmboe and total revenue of US$398.1 million.
In the past six months, the share price of the company increased by 2.44% as on 29 April 2019. At the time of writing, i.e., on 30 April 2019 AEST 1:07 PM, the stock of the company was trading at a price of A$7.775, down by 2.07% during the dayâs trade with the market capitalisation of ~A$12.14 Bn. It has 52 weeks high of $9.265 and 52 weeks low of $6.700 with an average volume of ~3,685,831.
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