OSL revenue drops

 OIL and gas producer Oil Search’s revenue has fallen due to lower production and lower crude oil prices, the Herald Sun reports. 

But the company is upbeat about its exploration projects in Papua New Guinea which, it says, could significantly boost its production.

Oil Search’s total operating revenue in the first six months was US$381 million (K856 million), down 4.4% from US$398.5 million (K894 million) compared to the same period last year.

Average crude oil prices in the first-half of this year were 6% lower than in the first half of 2012, at US$108.58 (K373).

Oil Search also produced less oil and gas in the first half of this year, with volumes down 2% from the previous corresponding period to 3.19 million barrels of oil equivalent (mmboe).

Both factors contributed to a 6% drop in oil sales for the six months to June of this year.

However, the company still expects to produce between 6.2 mmboe and 6.7 mmboe this year.

Managing director Peter Botten said Oil Search made one gas and two oil discoveries in PNG during the three months to June.

The company will apply to the PNG Government for an oil field development licence at the Mananda ridge in August.

“The potential oil in place on this feature could be as high as 100 million barrels,” Botten said in a statement.

Oil Search also said it was watching with interest talks that could lead to an expansion of the PNG LNG project, in which the company is a joint venture partner. – Herald Sun