Oil Search Expects Steady Production Level In 2012

Oil Search Ltd. (OSH.AU) said Tuesday it expects production this year of between 6.2 million and 6.7 million barrels of oil equivalent following an almost 13% fall in 2011 output due to the natural decline of its Papua New Guinea fields and a planned two-week shutdown of a gas project.

Recent successful exploration and appraisal drilling is expected to largely offset natural field decline this year, the company said in a statement to the Australian securities exchange.

The Papua New Guinea-based company said it produced 6.69 million barrels last year, compared with 7.66 million in 2010. Revenue for the year, however, increased to US$654.3 million frmo US$517.3 million the year before, help in part by a rise in the average realized price for oil.

Oil Search said it produced 1.64 million barrels in the fourth quarter, up 10% on the previous quarter but down 14% from 1.86 million a year earlier.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

Oil Search (ASX:OSH)
Historical Stock Chart
From Jun 2024 to Jul 2024