PERTH (miningweekly.com) – Full-year production at ASX-listed Oil Search has exceeded expectations following a strong June quarter, the miner reported on Tuesday.

Production in the fourth quarter reached 1.77-million barrels of oil equivalent, taking the full-year production to 6.74-million barrels of oil equivalent, which was higher than the guidance of between 6.2-million and 6.7-million barrels of oil equivalent.

Production in the 2013 financial year was also 6% higher than the 2012 financial year's output.

“Oil Search closed the 2013 financial year on a very positive note, with strong production in the second half resulting in full-year production above guidance,” said MD Peter Botten.

“The fourth quarter also saw continued progress on the Papua New Guinea liquefied natural gas (PNG LNG) project, which remains on track for first sales in the second half of 2014, and the start of oil appraisal drilling both in Papua New Guinea and Kurdistan.”

Botten pointed out that the PNG LNG commissioning activities were now in full swing, and a major milestone was achieved in December when gas was introduced from the Oil Search-operated Kutubu field into the Hides gas conditioning plant.

This was followed by commissioning activities at the LNG plant in the third quarter of 2013.

The $19-billion PNG LNG project is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central provinces of Papua New Guinea.

More than 700 km of pipeline connect the facilities, which include a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with capacity of 6.9-million tonnes a year.

Botten said that work also continued on the potential development of the P’nyang gas field, to help underwrite an expansion of the PNG LNG project. Scoping studies for this were expected to continue through 2014 in preparation for the submission of a development licence application early in 2015.