OSL posts 5% gain

OIL Search Limited (OSL), PNG’s oil and gas producer yesterday posted a 5% gain in first-quarter output, while its sales revenue more than doubled on the back of higher oil and gas prices.The Australian-listed firm yesterday said output for the March quarter was two million barrels of oil equivalent (boe), compared with 1.90 million boe a year ago, thanks to new production wells drilled at mature oil fields.Revenue for the quarter jumped to A$133.8 million (about K366 million) from A$68.6 million (K187 million) last year.OSL said as with all other major Australian oil and gas firms, the company was realigning its business to focus on the burgeoning liquefied natural gas (LNG) sector.OSL, a partner with ExxonMobil Corp in the PNG LNG export project that was sanctioned last year, said the project has started to mobilise key engineers and contractors into the country and has begun early construction activities at the plant site.The A$15 billion (K41 billion) LNG project will produce 6.6 million tonnes per year of LNG via two production trains when it comes online in 2014.The firm did not give an update to its 2010 production guidance, which it has earlier estimated to fall 10% from last to be between 7.2-7.4 million boe.Most investors are looking beyond OSL’s short term performance figures and focusing on progress at the PNG LNG project, which is OSL’s first foray into the business.