Australia's oil production in the three months to March 31 rose 4.8% on year to 27.6 million barrels from 26.3 million in the previous corresponding period, advisory group EnergyQuest said Wednesday.

Crude output was boosted by the start of production at the Vincent oil field and higher output from Enfield, both of which are joint ventures between Woodside Petroleum Ltd. (WPL.AU) and Mitsui & Co. Ltd. (8031.TO), as well as higher output from the Gippsland joint venture between BHP Billiton Ltd. (BHP.AU) and Exxon Mobil Corp. (XOM).

Liquefied natural gas production for the quarter climbed 22.7% on year to 3.61 million metric tons from 2.9 million tons last year, largely due to the contribution of the fifth processing train at the North West Shelf joint venture.

EnergyQuest Chief Executive Graeme Bethune said the global downturn was hitting gas markets with demand falling across the board and prices moving lower.

However, despite the drop in prices and demand there has been no let up in Australian gas project activity, with LNG projects based on coal seam gas in Queensland state continuing to progress.

"Companies are clearly looking through the downturn to the economic recovery," Bethune said.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com