Oil Search (ASX:OSH) - CFO & Acting CEO, Peter Fredricson
CFO & Acting CEO, Peter Fredricson
Source: Oil Search
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • With the rise in oil and gas prices over the past few weeks, producers such as Oil Search (OSH) have been enjoying the bigger pay cheque
  • Production fell from 7.28 million barrels to 6.58 million, but this was offset by a major increase in prices
  • All up, total operating revenue for the period jumped from $266.2 million last year to $366.2 million
  • Shares in Oil Search are up 0.51 per cent to $3.97 at 11:13 am AEST

With the rise in oil and gas prices over the past few weeks, producers such as Oil Search (OSH) have been enjoying the bigger pay cheque.

While production for the June quarter this year fell — from 7.28 million barrels of oil equivalent last year to 6.58 million barrels — the effect was offset by a major shift in the market. The average realised price for oil and condensate jumped from US$23.05 (A$31.22) per barrel to US$71.55 (A$96.90), while LNG and gas rose from US$7.34 (A$9.94) per mmBtu to US$8.61 (A$11.66).

As a result, total operating revenue for the period increased from $266.2 million last year to $366.2 million.

Acting chief executive Peter Fredricson, who took over from Keiran Wulff last week, said the Pikka Phase 1 project in Alaska was tracking in line with expectations.

“It is in everyone’s interest — Oil Search, shareholders, JV partners — that we commit to FID on this high quality asset only when appropriate funding and ownership levels (across upstream and infrastructure) are in place,” he said.

“During the second quarter Papua LNG has progressed financing, technical and commercial work on the expansion scope in preparation for a further ramp up in project activity in 2H 2021.”

Details of the company’s second-quarter performance come hot on the heels of a takeover bid from fellow energy producer Santos, which offered to purchase all of Oil Search’s shares for $4.25 each.

In response, Oil Search noted that, based on last week’s closing share price, “the proposed terms represent a premium of only 6.8 per ncent despite Santos shareholders owning 70 percent more of the equity than Oil Search shareholders.”

“Oil Search has communicated to Santos that it is open to receiving a revised proposal which more appropriately reflects the value which Oil Search would bring to any combined entity.”

Shares in Oil Search are up 0.51 per cent to $3.97 at 11:13 am AEST.

OSH by the numbers
More From The Market Online
The Market Online Video

Market Close: Green lights up on ASX for Easter hunt go

The ASX200 closed the day in record territory - nearly a per cent up with every…
The Market Online Video

Market Update: ASX glows red hot with another hit record

The ASX200 is trading up, hitting a new high of 7901 point and eclipsing the last…
The Market Online Video

Market Close: ASX eases up as staple sector shines

The ASX200 closed up just over half a per cent led by staples, healthcare and industrials.
The Market Online Video

Market update: CPI comes in lower than expected at 3.4%

CPI data released by the Australian Bureau of Statistics turned out better than expected figures of…