Australia's Oil Search Q4 sales and production rise strongly

Australia's Oil Search Q4 sales and production rise strongly - UPDATE

	Published : Tue, 30 Jan 2007 02:00 By : Agencies Print this Story

SYDNEY (XFN-ASIA) - Papua New Guinea based oil and gas company Oil Search Ltd said sales revenue for the three months to December rose 19 pct to 171.3 mln usd compared to the previous quarter, while total oil and gas production climbed 14 pct to 2.65 mln barrels of oil equivalent.

The solid fourth quarter sales raised full year revenue to 628.2 mln usd, only two pct shy of the 638.4 mln record revenue achieved in 2005.

The Australian listed company said the positive December quarter result was due to normal operations resuming in PNG following the weather-related cargo loading issues which affected third quarter output.

Average realized oil price achieved during the December quarter fell 15 pct to 61.33 usd a barrel compared to the third quarter, reflecting the fall in global crude oil prices.

The company's average oil price achieved over 2006 was 67.22 usd a barrel, 16 pct higher than in 2005.

Oil Search is due to to release its full year profit report on Feb 20.

Chief executive Peter Botten said during the fourth quarter a considerable amount of time was focused on reviewing optimal methods for developing the large gas resources in PNG.

He said expressions of interest continued to be sought from pipeline companies to build, own and operate the Australian section of the proposed PNG-Queensland gas project.

Botten said discussions with Mitsubishi Gas Chemical Co and Itochu Corp confirmed their

commitment to developing a petrochemical industry in PNG utilizing Oil Search gas.

The initial phase of work for a possible liquefied natural gas (LNG) project in PNG took place during the December quarter and work is expected to continue during 2007.

The chief executive said exploration activity increased significantly during the fourth quarter,

particularly in the Middle East region with two wells in Egypt both finding oil while earlier this month another Egyptian well also discovered oil.

Botton said his company has recently approved the 2007 work programmes including 190 mln usd to be spent on exploration and appraisal activities and a further 120 mln usd on producing fields, 65 mln for rig purchases and 20 mln on gas.

paul.daniel@xfn.com

Australia's Oil Search Q4 sales and production rise strongly - UPDATE