$50-60 New Normal or U.S Shale Bubble?, page-755

It's not so bad!

“Oil Search finished 2017 strongly, with fourth quarter production of 7.59 mmboe taking full year production to 30.31 mmboe, which was at the upper end of our guidance range and an all-time record for the Company. In October, the second phase of scheduled compressor upgrades at the PNG LNG Project plant site took place. Production rates picked up following this work, with the plant averaging 8.6 MTPA in December. The upgrades to the compressors undertaken during 2017 should enable production to be maintained sustainably at or above 8.5 MTPA, before factoring in normal levels of downtime. Our operated oil and gas fields in PNG also performed well during the quarter, with production of 1.51 mmboe, net to Oil Search, largely unchanged from the third quarter. Our realised oil and condensate price in the fourth quarter was US$63.05 per barrel, up 20% on the third quarter, reflecting the strength in global oil prices. This, together with a 5% increase in our realised LNG and gas price, helped lift fourth quarter revenue to US$389 million, driving total revenue for the year to US$1.45 billion, 17% higher than in 2017.